In this study, the authors have investigated the effects of various factors on both aerobic and anaerobic degradation of 4-t-octylphenol (4-t-OP) in granular sludge. In comparison, the aerobic degradation rate was much higher than that of anaerobic degradation. The optimal pH values for 4-t-OP degradation in granular sludge were 9 and 7 under aerobic and anaerobic conditions, respectively. And the degradation rate decreased with an increase in the initial 4-t-OP concentration. Addition of yeast extract or homologous compounds such as phenol also enhanced the 4-t-OP degradation, especially under the aerobic condition. To investigate the bacterial community in this study, the denaturing gradient gel electrophoresis (DGGE) method was applied, based on the primers, for the 16S rDNA V3 region of bacteria. γ-proteobacteria and bacillus were identified as the major species of sludge.