The complete biodegradation of azo dye, Fast Acid Red GR, was observed under microaerophilic conditions by Shewanella decolorationis S12. Although the highest decolorizing rate was measured under anaerobic condition and the highest biomass was obtained under aerobic condition, a further biodegradation of decolorizing products can only be achieved under microaerophilic conditions. Under microaerophilic conditions, S. decolorationis S12 could use a range of carbon sources for azo dye decolorization, including lactate, formate, glucose and sucrose, with lactate being the optimal carbon source. Sulfonated aromatic amines were not detected during the biotransformation of Fast Acid Red GR, while H2S formed. The decolorizing products, aniline, 1,4-diaminobenzene and 1-amino-2-naphthol, were followed by complete biodegradation through catechol and 4-aminobenzoic acid based on the analysis results of GC-MS and HPLC.