Dry powdered particles have been proposed as suitable lubricant alternatives in hydrodynamic bearings that operate in extreme environments where normal lubricants fail, such as at high temperatures and under extreme working conditions. As oil lubricant was prone to thermal degradation at high temperatures, powder lubricants will not undergo degradation. In the present work, a suitable model has been proposed for predicting the behavior of a powder-lubricated circular journal bearing by using the CFD technique and the results have been validated with the numerical solution of the equations solved using FDM technique. Static and dynamic characteristics have been predicted for powdered particles with a size of 1 and 2 µm and for bearings with L/D ratios of 1 and 0.58. Using both these techniques the load carrying capacity is found to be increasing with an increase in L/D ratio, particle diameter, and eccentricity ratio.