A spray dryer for drying liquid into powder including an elongated drying chamber, a spray nozzle assembly at an upper end of the drying chamber and a filter element housing and powder collection chamber at a lower end of the drying chamber. The filter element housing comprises a plurality of cylindrical filter elements supported from a wall of an exhaust chamber that communicates with an exhaust gas outlet of the filter element housing. In one embodiment, the filter element housing includes an inner downwardly opening cylindrical shroud surrounding the filter elements which defines an outer annular powder and drying gas passageway communicating with the powder collection chamber, and the exhaust chamber is defined by a downwardly opening conical plenum having an outer conical surface for directing drying gas and powder about the shroud into the powder collection chamber. Filter elements each have a respective reverse gas pulse cleaning device.