Wastewater treatment by means of algal-bacterial granules has become a hot topic worldwide recently. Rapid granulation of algal-bacterial granules was achieved in an aerobic bacterial granular sequencing batch reactor (SBR) under natural sunlight exposure. Occurrence of abundant filamentous bacteria bridging the water-born algae, and overproduction of extracellular polymeric substances (EPS) (especially polysaccharides (PS), tryptophan & protein-like, and humic acid-like substances) were observed on the first 3 days, while the algae grew into the inner side of the granules and mature granules were obtained on day 7. The growth of the water-born algae slightly decreased the settleability, mean sizes of the granules, but stimulated the bioactivity significantly. Whereas, the biomass retention decreased before day 3, and got stable soon with the maturation period with symbiotic growth of algal-bacterial biomass. Illumina results revealed that the introduction of algae reduced the richness and diversity of bacterial community. Besides, few changes in structure and some compositions shifts in bacterial communities were found, while the predominant algae shifted from Diatomea to green algae Chlorophyceae. The possible mechanism for natural sunlight induced granulation of algal-bacterial granules was thus proposed based on the interactions between algae and bacteria.