Aerobic granular sludge technology will play an important role as an innovative technology alternative to the present activated sludge process in industrial and municipal wastewater treatment in the near future. Intended to fill the gaps in the studies of aerobic granular sludge, this thesis comprehensively investigates the formation, characterization and mathematical modeling of aerobic granular sludge, through integrating the process engineering tools and advanced molecular microbiology. The research results of this thesis contributed significantly to the advance of understanding and optimization of the bacterial granulation processes, the next generation of technology for cost-effective biological wastewater treatment. Dr. Bing-Jie Ni works at Advanced Water Management Centre (AWMC) of The University of Queensland, Australia.