This paper presents a numerical simulation of Automobile Shredder Residue (ASR) chips motion and combustion in a cement works precalciner. The work was done using the commercial computational fluid dynamic (CFD) code FLUENT. The aim of this work is to develop an understanding of the processes within the percalciner to aid in the prediction of ASR chip aerodynamic and combustion behaviors for its use as an alternative fuel. The effects of the mutual interactions between ASR chips were simulated by discrete phase modeling approach, while ASR combustion was simulated by the finite rate devolatilization models. A useful approach to simulate the characteristics of turbulent gas-particle flow, heat transfer and ASR combustion process in a precalciner has been demonstrated.