In order to reduce the investment costs of the anaerobic side-stream reactor (ASSR) process coupled with an activated sludge system and promote the full scale application, the impact of 1 d anaerobic solid retention time (SRTASSR) and 100% interchange ratio (IR) has been investigated on sludge reduction, carbon and nutrient removal efficiency and microbial community, in a sequencing batch reactor (SBR)-ASSR system. The SBR-ASSR achieved good removal efficiencies in COD (91.5 +/- 3.4%), ammonium nitrogen (98.8 +/- 0.5%), total nitrogen (87.9 +/- 4.9%) and phosphate (92.8 +/- 6.7). The sludge yield of the system was 0.1648 g TSS g(-1)COD; 54% lower compared to a conventional activated sludge (CAS) system. Real time quantitative polymerase chain reaction (q-PCR) showed an abundance of hydrolyzing and fermentative bacteria. Comparison at class and genus level confirmed an abundance of anaerobic hydrolyzing and fermentative bacteria, denitrifying bacteria able to simultaneous perform nitrogen and phosphate removal and phosphate accumulating organisms.