Aerobic granular sludge can successfully be cultivated in a sequencing batch reactor (SBR) treating dairy wastewater. Attention has to be paid to the fact that suspended solids are always present in the effluent of aerobic granular sludge reactors, making a post-treatment step necessary. Sufficient post-treatment can be achieved through a sedimentation process with a hydraulic retention time of 15 - 30 min. After complete granulation and the separation of biomass from the effluent, removal efficiencies of 90% CODtotal, 80% N-total and 67% P-total can be achieved at a volumetric exchange ratio of 50% and a cycle duration of 8 h. Effluent values stabilize at around 125 mg l(-1) CODdissolved. The maximum applicable loading rate is nevertheless limited, as the stability of aerobic granules very much depends on the presence of distinct feast and famine conditions and the degradation of real wastewaters shows slower kinetics compared with synthetic wastewaters. As loading rate and volumetric exchange ratio are coupled in an SBR system, the potential of granular sludge for improving process efficiency is also limited.