PCP-degrading anaerobic granular sludge could be formed in an upflow anaerobic sludge blanket (UASB) reactor that was seeded with anaerobic sludge acclimated to chlorophenol. When hydraulic retention time (HRT) was 20-22 h and PCP loading rate was 200-220 mgL(-1)d(-1), the wastewater containing 170-180 mgL(-1) PCP could be treated effectively in UASB reactor, and PCP removal rate reached up to 99.5%. PCP adsorption and desorption by anaerobic granular sludge follow Freundlich isothermal equation and part of adsorption capacity was not reversible. And the isothermal equation could well describe the variation law of PCP adsorption and desorption by anaerobic granular sludge. The results indicated that the principal removal mechanism of PCP was biodegradation by anaerobic granular sludge, but not adsorption or volatilization.