In this study, the granular sludge was generated for simultaneous nitrification, denitrification and phosphorus removal (SNDPR) and studied on a laboratory scale. Analyzing the nutrients removal percentages from wastewater were scrutinized by using an optimization of the variables, i.e., COD:N:P ratio, OLR, aeration time, MLSS, F:M and HRT. These 6 interrelated parameters were evaluated as the process response. Microscopic observations of the performance of the SNDPR process revealed that the granules included Bacillus sp. in the bacterial community. According to these results, the UAASB system produced an effluent that lends dairy wastewater suitable for land irrigation and that this an attractive process of using granular sludge is appropriate for achieving carbon, nitrogen and phosphorus removal from nutrient-rich wastewater by a biological method. (C) 2013 Elsevier Ltd. All rights reserved.