Simulations of gas-solid fluidized beds have been carried out using a hybrid simulation method, which couples the discrete element method (DEM) for particle dynamics with the ensemble-averaged two-fluid (TF) equations for the fluid phase. The coupling between the two phases is modeled using an interphase momentum transfer term. The results of the hybrid TF-DEM simulations are compared to experimental data and two-fluid model simulations. It is found that the TF-DEM simulation is capable of predicting general fluidized bed dynamics, i.e., pressure drop across the bed and bed expansion, which are in agreement with experimental measurements and two-fluid model predictions. In addition, the TF-DEM model demonstrates the capability to capture more heterogeneous structural information of the fluidized beds than the two-fluid model alone. The microstructures in fluidized beds are analyzed and the implications to kinetic theory for granular flows are discussed. However, the TF-DEM simulations depend on the form of the interphase momentum transfer model, which can be computed in terms of averaged or instantaneous particle quantities. Various forms of the interphase momentum transfer model are examined, and their suitability to the hybrid TF-DEM simulation approach is evaluated.