Granulation is an important step during the production of urea granules. Most of the commercial binders used for granulation are toxic and non-biodegradable. In this study, a fully biodegradable and cost-effective starch-based binder is used for urea granulation in a fluidized bed granulator. The effect of binder properties such as viscosity, surface tension, contact angle, penetration time, and liquid bridge bonding force on granulation performance is studied. In addition, the effect of fluidized bed process parameters such as fluidizing air inlet velocity, air temperature, weight of primary urea particles, binder spray rate, and binder concentration is also evaluated using response surface methodology. Based on the results, binder with higher concentration demonstrates higher viscosity and higher penetration time that potentially enhance the granulation performance. The viscous Stokes number for binder with higher concentration is lower than critical Stokes number that increases coalescence rate. Higher viscosity and lower restitution coefficient of urea particles result in elastic losses and subsequent successful coalescence. Statistical analysis indicate that air velocity, air temperature, and weight of primary urea particles have major effects on granulation performance. Higher air velocity increases probability of collision, whereby lower temperature prevents binder to be dried up prior to collision. Findings of this study can be useful for process scale-up and industrial application. © 2019 by the authors.