A dry-desulfurization process using Ca(OH)2/fly ash sorbent and a circulating fluidized bed (CFB) was developed. Its aim was to achieve high SO2 removal efficiency without humidification and production of CaSO4 as the main byproduct. The CaSO4 produced could be used to treat alkalized soil. An 83% SO2 removal rate was demonstrated, and a byproduct with a high CaSO4 content was produced through baghouse ash. These results indicated that this process could remove SO2 in flue gas with a high efficiency under dry conditions and simultaneously produce soil amendment. It was shown that NO and NO2 enhanced the SO2 removal rate markedly and that NO2 increased the amount of CaSO4 in the final product more than NO. These results confirmed that the significant effects of NO and NO2 on the SO2 removal rate were due to chain reactions that occurred under favorable conditions. The amount of baghouse ash produced increased as the reaction progressed, indicating that discharge of unreacted Ca(OH)2 from the reactor was suppressed. Hence, unreacted Ca(OH)2 had a long residence time in the CFB, resulting in a high SO2 removal rate. It was also found that 350 degrees C is the optimum reaction temperature for dry desulfurization in the range tested (320-380 degrees C).