The cultivation and instability of aerobic granular sludge in a sequencing batch reactor under high loading conditions were investigated. Compact bacteria-dominated aerobic granules with a mean diameter of 1 mm were formed at a chemical oxygen demand (COD) loading rate of 6.0 kg m(-3) d(-1) within 30 d. However, the compact bacteria-dominated aerobic granules were not stable and transited to large-sized filamentous ones gradually. With the formation of bacteria-dominated granules, the hydrophobicity and specific gravity of the sludge increased. When the granules were transited to filamentous ones, the hydrophobicity and specific gravity decreased. Both granules had a high COD removal efficiency, excellent settling ability and showed a clear, regular round-shaped outline. After the filamentous granules reached a diameter of 16 mm, due to the mass transfer limitation and the possible presence of anaerobes in the inner part of the granules, they began to disintegrate and be washed out of the reactor, follow by failure of the reactor.