In-line moisture measurements of a pharmaceutical granulation of lactose, microcrystalline cellulose and crospovidone were performed in a fluid bed granulator/dryer using top sprayed granulating liquid. A near-infrared (NIR) prediction model was developed for moisture on spectra collected during a calibration run. Subsequent granulations were analyzed for moisture content real-time throughout the granulation and drying process using the NIR process instrument. NIR spectroscopy fits in well with the Process Analytical Technology (PAT) initiative as developed by the FDA.