Magnetic particle tracking (MPT) was employed to study a rotating drum filled with cork particles, using both air and water as interstitial medium. This noninvasive monitoring technique allows for the tracking of both particle translation and rotation in dry granular and liquid–solid systems. Measurements on the dry and floating bed rotating drum were compared and detailed analysis of the bed shape and velocity profiles was performed. It was found that the change of particle–wall and particle–particle interaction caused by the presence of water significantly affects the bed behavior. The decreased friction leads to slipping of the particles with respect to the wall, rendering the circulation rate largely insensitive to increased drum speed. It was also found that the liquid–particle interaction is determining for the behavior of the flowing layer. The well-defined experiments and in-depth characterization performed in this study provide an excellent validation case for multiphase flow models.