Compact and structurally stable aerobic granules were developed in a sequencing batch reactor (SBR) at mesophilic temperatures (35 degrees C). The morphological, biological and chemical characteristics of the aerobic granulation were investigated and a theoretical granulation mechanism was proposed according to the results of the investigation. The mature aerobic granules had compact structure, small size (mean diameter of 0.24 mm), excellent settleability and diverse microbial structures, and were effective for the removal of organics and nitrification. The growth kinetics demonstrated that the biomass growth depended on coexistence and interactions between heterotrophs and autotrophs in the granules. The functions of heterotrophs and autotrophs created a compact and secure layer on the outside of the granules, protecting the inside sludge containing environmentally sensitive and slow growing microorganisms. The mechanism and the reactor performance may promise feasibility and efficiency for treating industry effluents at mesophilic temperatures using aerobic granulation. (C) 2013 Elsevier Ltd. All rights reserved.