The effect of cyanobacterial bloom decay on water quality and the complete degradation of cyanobacterial blooms in a short period were examined by an enclosure experiment in Gonghu Bay of Lake Taihu, China. Water quality parameters as well as taste and odor compounds during the breakdown of cyanobacterial blooms were measured. Results showed that the decay of cyanobacterial blooms caused anoxic water conditions, decreased pH, and increased nutrient loading to the lake water. The highest concentrations of dimethyl sulfide (DMS), dimethyl trisulfide (DMTS), and beta-cyclocitral were observed in the anoxic water, at 62331.8, 12413.3, and 1374.9 ng/L, respectively. 2-Methylisoborneol was dominant during the live growth phase of cyanobacterial blooms, whereas DMS and DMTS were dominant during the decomposition phase. Dissolved oxygen, pH, and chlorophyll a were negatively correlated with DMS, DMTS, and beta-cyclocitral, whereas total phosphorus, total nitrogen, and ammonium (NH(4+)-N) were positively correlated with DMS, DMTS, beta3-cyclocitral, and beta-ionone. The experimental results suggested that preventing the anaerobic decomposition of cyanobacterial blooms is an important strategy against the recurrence of a malodor crisis in Lake Taihu.