A fluidized bed spray drying system for drying liquid into powder including an elongated drying chamber, a spray nozzle assembly at an upper end of the drying chamber and a powder collection chamber at a lower end of the drying chamber. A drying gas inlet is provided in the powder collection chamber and a drying gas outlet is provided at an upper end of the drying chamber. A plurality of cylindrical filter elements at the upper end of the drying chamber are in communication with the exhaust gas outlet for filtering drying gas borne powder from drying gas exiting the drying chamber.