Sugar manufacturing effluent was treated in an anaerobic fixed bed reactor seeded with nongranular anaerobically digested sewage sludge. The ambient room temperature during the study period was between 28-37 °C. Successful reactor starts with granulation was achieved within 90 days of operation. The reactor was started with an OLR of 0.031 kg COD/m³/day and was loaded up to the minimum COD 2240 mg/l. The maximum % COD removal efficiency of 86% for the sugar wastewater at 3.0 days Hydraulic Retention Time with an influent COD concentration of 3960 mg/l was obtained. The VFA concentration gradually decreased from 54 mg/l at 3.00 days HRT and at 24 mg/l at 0.6 days HRT. The VFA concentration was decreased drastically with increase the HRT. The VSS ranges from 98 mg/l to 165 mg/l at 0.6 day to 3.0 days Hydraulic Retention Time. Under steady state conditions the biomass concentration was progressively increased from 98 mg/l to 165 mg/l to increases the HRT.