A large quantity of protein-rich distillery wastewater is produced during the process of bio-ethanol production from kitchen waste. It is difficult, however, to treat protein-rich distillery wastewater by anaerobic digestion due to ammonia inhibition. In this study, a novel method was investigated to reduce ammonia inhibition during thermophilic anaerobic digestion through the recirculation of water-washed biogas into the headspace (R1 system) or liquid phase (R2 system) of the reactors. The results show that the method greatly improved biogas production from distillery wastewater. R2 system achieved stable biogas production at a higher organic loading rate (OLR) of 4.0 g VTS/L/d than R1 system at 3.0 g VTS/L/d. At the same OLR, we observed a higher biogas production rate but lower accumulation of NH4+ and volatile fatty acids in the reactor, and higher ammonia absorption rate in the water tank of R2 system than R1 system. The better performance of R2 system could be attributed to the more efficient removal of ammonia from liquid phase. In addition, adjusting the C/N ratio of distillery wastewater from 9.0 to 11.4 significantly enhanced the maximum OLR from 3.0 to 7.0 g VTS/L/d in R1 system. (C) 2013 Elsevier Ltd. All rights reserved.