The upflow anaerobic sludge blanket (UASB) reactor was evaluated for its efficacy in decolourization and reduction in chemical oxygen demand (COD) of real textile wastewater (RTW) under different operational conditions. The efficiency of UASB reactor in reducing COD was found to be over 90%. Over 92% of colour removal due to biodegradation was achieved. The activities of the anaerobic granules were not affected during the treatment of textile wastewater. Cocci-shaped bacteria were the dominant group over Methanothrix like bacteria in textile wastewater treatment. Alkalinity, volatile fatty acids (VFA) content and pH in effluents indicated that the anaerobic process was not inhibited by textile wastewater. It is concluded that UASB reactor system can effectively be used in the treatment of textile wastewater for the removal of colour and in the reduction of COD.