Filamentous bulking was observed in a lab scale upflow anaerobic sludge blanket (UASB) reactor. Granules failed to settle normally and disintegrated. The characteristics of the granules in structure and microbial composition during the granulation process were investigated by means of scanning electron microscopy (SEM) and denaturing gradient gel electrophoresis (DGGE) technique. Granules with high porosity instead of compact ones were developed in the reactor and Methanosaeta concilii and Methanobacterium formicicum were identified as the predominant methanogens present in granules. The excess growth of the filamentous bacteria could be the contributing factor causing floatation and disintegration. (c) 2007 Elsevier Ltd. All rights reserved.