Air caps are an effective way of ensuring uniformity of air flow in Circulating Fluidized Bed (CFB) boilers. Published literature on the design and configuration of these air caps is severely limited. In this study, extensive theoretical as well as experimental investigations have been carried out to design novel air caps in order to improve efficiency of CFB boilers. A small-scale test bench of 220 t/h CFB boiler has been developed, integrated with novel air caps. It has been observed that inhomogeneity in air flow velocity decreases from 65.79% to 21.25%, while the pressure drop decreases by 20%. A mathematic model of air caps has been derived and its accuracy verified through cold tests. Two empirical correlations for calculating the pressure drop and the air jet penetration length of the novel air caps have been obtained and verified. Finally, in order to validate the innovative design of air caps, this methodology has been implemented to a full-scale 220 t/h CFB boiler. The hot test results depict that the thermal efficiency of the boiler has increased from 86.4% to 91.8% when tested with the novel air caps in-place, which is equivalent to a saving of 6000 tons of coal per year.