Tributyl phosphate (TBP) is commercially used in large volumes for reprocessing of spent nuclear fuel. TBP is a very stable compound and persistent in natural environments and it is not removed in conventional waste water treatment plants. In this study, cultivation of aerobic granular bio films in a sequencing batch reactor was investigated for efficient biodegradation of TBP. Enrichment of TBP-degrading strains resulted in efficient degradation of TBP as sole carbon or along with acetate. Complete biodegradation of 2mM of TBP was achieved within 5h with a degradation rate of 0.4μmolmL⁻¹h⁻¹. TBP biodegradation was accompanied by release of inorganic phosphate in stoichiometric amounts. n-Butanol, hydrolysed product of TBP was rapidly biodegraded. But, dibutyl phosphate, a putative intermediate of TBP degradation was only partially degraded pointing to an alternative degradation pathway. Phosphatase activity was 22- and 7.5-fold higher in TBP-degrading biofilms as compared to bioflocs and acetate-fed aerobic granules. Community analysis by terminal restriction length polymorphism revealed presence of 30 different bacterial strains. Seven bacterial stains, including Sphingobium sp. a known TBP degrader were isolated. The results show that aerobic granular biofilms are promising for treatment of TBP-bearing wastes or ex situ bioremediation of TBP-contaminated sites.