Anaerobic treatment of palm oil mill effluent (POME) was studied using a 16-litre laboratory scale up-flow anaerobic sludge blanket reactor (UASB) run over a range of influent concentrations from 5.1 to 42.5 g Chemical Oxygen Demand (COD) per litre at a constant hydraulic retention time of four days. Methane production, volatile fatty acid conversion, net sludge growth and Chemical Oxygen Demand reduction were monitored. Over 96% Chemical Oxygen Demand was removed at loadings up to 10.6 g COD 1(-1) day-1. At the highest influent concentration reactor instability was observed. Up to this point the results indicated that the UASB could treat POME more effectively than other systems reviewed.