Aerobic sludge granulation is an attractive new technology for biological wastewater treatment. However, the instability of aerobic granules caused by fungal growth is still one of the main problems encountered in granular bioreactors. In this study, laboratory experiments were conducted to investigate the fate and transformation of aerobic granules under different organic loading conditions. Bacterial granules (2-3mm) in a poor condition with fungi-like black filamentous growth were seeded into two 1L batch reactors. After more than 100d of cultivation, the small seed granules in the two reactors had grown into two different types of large granules (>20mm) with different and unique morphological features. In reactor R1 with a high organic loading rate of 2.0g COD L(-1)d(-1), the black filaments mostly disappeared from the granules, and the dominance of rod-shaped bacteria was recovered. In contrast, at a low loading of 0.5g COD L(-1)d(-1) in reactor R2, the filaments eventually became dominant in the black fungal granules. The bacteria in R1 granules had a unique web-like structure with large pores of a few hundred microm in size, which would allow for effective substrate and oxygen transport into the interior of the granules. DNA-based molecular analysis indicated the evolution of the bacterial population in R1 and that of the eukaryal community in R2. The experimental results suggest that a high loading rate can be an effective means of helping to control fungal bloom, recover bacterial domination and restore the stability of aerobic granules that suffer from fungal contamination.