Drag reduction is one of the most important techniques for reducing energy consumption in a packed bed contactor. The present work involves an experimental investigation on flow regime transition for air-water system with and without drag reducing agent (DRA), two-phase pressure drop, friction factor and drag reduction using xanthan gum as DRA. Drag reduction was quantified from the two-phase pressure drop data. Based on the present observations it was found that the percentage drag reduction increases with an increase in the concentration of DRA and it is only effective in the range of 300 ppm to 800 ppm. The experimental results indicate that a maximum of 80 drag reduction was achievable using xanthan gum (800 ppm) as DRA. Furthermore, the experimental data were validated with the available literature correlations. © 2010 Korean Institute of Chemical Engineers, Seoul, Korea.