OFAGR, as a new controllable technology, combines over-fire air (OFA) and flue gas recirculation (FGR) systems for modifying combustion characteristics and enhancing boiler efficiency. It also reduces NOx generation considerably. The effects of OFA and FGR on the combustion are reported for coal-fired boilers, however, no reference was found for the application of OFAGR, especially in boilers with natural gas fuel so far. Furthermore, the method of adjusting the ratio of OFA and FGR in OFAGR nozzles to achieve the required combustion modification is not investigated and this fact should be even covered for different types of boilers. For analysis of complicated combustive mixed fuel (natural gas) and air in furnace, computational fluid dynamics (CFD) simulated the flow by the use of Eddy-Dissipation Concept (EDC) and developing reactions by Jones-Lindstedt mechanism. Simulation results are validated by the measured boiler operation data for a 250 MW steam power plant boiler. The staged combustion in each burner is modeled by considering three inlet air flows (primary, secondary, and tertiary) with swirl. The effects of different ratios of OFA and FGR streams on characteristics of combustion and NOx production are investigated. The combustion efficiency, temperature profile, distribution of species, and the transferred heat flux to water-walls are computed, and analyzed. Results showed injecting only OFA from OFAGR nozzles, reduced NOx generation up to 55.4 % but lowered the furnace efficiency from 95.3 % to 93.1 %. When the OFAGR stream contained 25 % FGR and 75 % OFA (case study 2), an ideal state existed for increasing the combustion efficiency from 95.3 % to 96.0 % and NOx reduction by 58 %. Increasing the share of FGR in the OFAGR stream by more than 25 % improved the NOx reduction but reduced the combustion efficiency from 95.3 % due to the drop in the usable absorption heat of the boiler. Calculations showed that the OFAGR injection stream containing 64.1 % OFA and 35.9 % FGR reduced NOx formation from 274 to 112 ppm without losing furnace efficiency.