The ebullated-bed reactor (EBR) is an important system used in the upgrading of heavy oil residue into valuable light products in petroleum refinery operations. The assessment of the gas separation region hydrodynamics is very significant to investigate the performance of EBR. An advanced understanding of EBR fluid dynamics will help in improving the design of existing and future commercial units. For this reason, the development of a computational fluid dynamics (CFD) model is very challenging, where understanding the fundamentals of fluid dynamics in EBR is carried out using a three dimensional model and the turbulence model with a standard wall function in cup geometric design. The two models were used to analyze the influence of operational parameters such as recycle ratio, and inlet velocity on gas fraction recycled and separation efficiency. Moreover, the prediction of the regime transitions occurring in the freeboard region of the EBRs was achieved using the two aforementioned models. The results of the fluid dynamics behavior revealed that the inlet velocity has a substantial effect on gas fraction recycled and separation efficiency. The liquid mean residence time scale provided a valuable efficiency result for the separation within the range of expected mean residence times. This investigation, therefore, provided a good framework for the evaluation of future design and gave a better understanding of gas and liquid flow patterns in EBR.