The report is the third on the status of dry flue gas desulfurization (FGD) processes in the U.S. It reviews current and recently completed research, development, and commercial activities. Dry FGD systems covered include: (1) spray dryers with a fabric filter or an electrostatic precipitator (ESP), (2) dry injection of alkaline material into flue gas, combined with particulate collection in an ESP or a fabric filter, and (3) combustion of coal/alkali fuel mixtures. Spray drying remains the only commercially applied FGD process. With two new utility and two new industrial spray drying system sales since the last report, dry FGD has been selected for 3600 MW of utility generating capacity and about 600,000 acfm of industrial coal-fired flue gas. All new systems use a lime sorbent and a fabric filter for particulate collection. No new commercial systems have begun operation since the Fall of 1980, but the first utility system was scheduled to start up in the Spring of 1981. Pilot-scale demonstration programs which have been recently completed and several continuing programs are discussed. Significant work on dry FGD waste disposal has begun under both government and industry sponsorship and is addressed in the report.