The simulations of methanation reaction in fluidized bed reactor are carried out using CFD open-source software. The results of species concentration are in reasonable agreement with experiment data. The CO is consumed rapidly and little H2 remains in the bed due to water-gas shift reaction. At current situation, with the increase of catalyst inventory, the production of methane reduces slightly. The high fluidizing gas velocity is beneficial for the removal of reaction heat and the increasing of production rate of CH4. By adding the water into the feedstock, the methane production increases since the additional hydrogen is produced by water-gas shift reaction.