Bed material particle layer formation plays a significant role in thermo-chemical conversion of biomass. The interaction between biomass ash and bed material in fluidized bed conversion processes has been described for a variety of different applications and spans from fundamental research of formation mechanisms to effects of this layer formation on long-term operation in industrial-scale. This review describes the current state of the research regarding the mechanisms underlying layer formation and the positive influence of bed material particle layer formation on the operation of thermo-chemical conversion processes. Thus, the main focus lies on its effect on the catalytic activity towards gasification reactions and the impact on oxygen transport in chemical looping combustion. The review focuses on the most commonly investigated bed materials, such as quartz, feldspar or olivine. While the most relevant results for both the underlying mechanisms and the subsequently observed effects on the operation are presented and discussed, knowledge gaps where further research is necessary are identified and described.