Pseudomonas sp. strain L1 capable of degrading the azo textile dye Reactive blue 13, was isolated from activated sludge in a sequencing batch reactor. A continuous two-stage anaerobic/aerobic biological fluidized bed system was used to decolorize and mineralize Reactive blue 13. The key factors affecting decolorization were investigated and the efficiency of degradation was also optimized. An overall color removal of 83.2% and COD removal of 90.7% was achieved at pH 7, a residence time of 70 h and a glucose concentration of 2 g/L, HRT=70 h and C(glucose)=2000 mg/L. Oxygen was contributing to blocking the azo bond cleavage. Consequently, decolorization occurred in the anaerobic reactor while partial mineralization was achieved in the aerobic reactor. A possible degradation pathway based on the analysis of intermediates and involving azoreduction, desulfonation, deamination and further oxidation reactions is presented.