Granular sludge formed in an aerobic SBR reactor treating synthetic wastewater with low dissolved oxygen (DO) levels between 0.7-1.0 mg/L. The granular sludge had a spherical morphology 0.3-0.5 mm in diameter, good settleability with SVI between 80-100 ml/g, and high COD and nitrogen removal rates. The granular sludge structure contained microcolonies and exhibited carbon and nitrogen removal activities that increased with aeration rate but were independent of actual DO concentration. The granular sludge differed from flocculent sludge in its distinct morphology and internal rod-shaped bacterial arrangement, providing effective treatment even at low DO levels.