A fluidized bed spray drying system for drying liquid into powder comprising an elongated body supported in upright position; an upper end closure arrangement and a lower end closure arrangement at opposite upper and lower ends of the elongated body respectively, for forming a drying chamber within said elongated body; a spray nozzle assembly supported in said upper end closure arrangement; said spray nozzle assembly including a nozzle body having a liquid inlet for coupling to a supply of liquid and a discharge spray tip assembly at a downstream end for directing liquid to be dried into said drying chamber; said upper end closure arrangement having a drying gas inlet for introducing drying gas into said drying chamber for drying liquid directed into the drying chamber into powder; said closure arrangement at the lower end of said elongated body including powder collection chamber for collecting powder dried in said drying chamber and a filter housing having an exhaust gas outlet for filtering drying gas borne powder from drying gas exiting the powder collection chamber through said filter element housing and the exhaust gas outlet; said filter element housing including a plurality of cylindrical filter elements supported in a wall of an exhaust chamber communicating with said exhaust gas outlet; and said cylindrical filter elements each being closed at one end and having an opposite open axial end communicating with said exhaust chamber such that drying gas exiting the powder collection chamber passes through a cylindrical side of the filter element which restrains gas borne powder with drying gas which then proceeds out the open axial end into and through said exhaust chamber and exhaust gas outlet. an elongated body supported in upright position; an upper end closure arrangement and a lower end closure arrangement at opposite upper and lower ends of the elongated body respectively, for forming a drying chamber within said elongated body; a spray nozzle assembly supported in said upper end closure arrangement; said spray nozzle assembly including a nozzle body having a liquid inlet for coupling to a supply of liquid and a discharge spray tip assembly at a downstream end for directing liquid to be dried into said drying chamber; said upper end closure arrangement having a drying gas inlet for introducing drying gas into said drying chamber for drying liquid directed into the drying chamber into powder; said closure arrangement at the lower end of said elongated body including powder collection chamber for collecting powder dried in said drying chamber and a filter housing having an exhaust gas outlet for filtering drying gas borne powder from drying gas exiting the powder collection chamber through said filter element housing and the exhaust gas outlet; said filter element housing including a plurality of cylindrical filter elements supported in a wall of an exhaust chamber communicating with said exhaust gas outlet; and said cylindrical filter elements each being closed at one end and having an opposite open axial end communicating with said exhaust chamber such that drying gas exiting the powder collection chamber passes through a cylindrical side of the filter element which restrains gas borne powder with drying gas which then proceeds out the open axial end into and through said exhaust chamber and exhaust gas outlet.