Decolorization of 1-aminoanthraquinone-2-sulfonic acid (ASA-2) and its accelerating effect on the reduction of azo acid dyes by Sphingomonas xenophaga QYY were investigated. The study showed that ASA-2 could be efficiently decolorized by strain QYY under aerobic conditions according to the analysis of total organic carbon removal and UV-VIS spectra changes. Moreover, strain QYY was able to reduce azo acid dyes under anaerobic conditions. The effects of various operating conditions such as carbon sources, temperature, and pH on the reduction rate were studied. It was demonstrated that ASA-2 used as a redox mediator could accelerate the reduction process. Consequently the reduction of azo acid dyes mediated by ASA-2 and the decolorization of ASA-2 with strain QYY could be achieved in an anaerobic-aerobic process.