Abstract: A hybrid biological reactor was developed and used to treat distillery wastewater. The hybrid reactor configuration consists of direct fluidized bed in the inner core and inverse fluidized bed in annular region with anaerobic condition. The experiments were carried out in semi-continuous mode. For the direct fluidization ceramic support particles (diameter 2 mm, bulk density 1516 kg m-3) were used and for inverse fluidization spherical plastic beads (diameter 3 mm, bulk density 518 kg m-3) were used. The initial bed height was maintained at 5 cm. The reactor influent was raw distillery wastewater (pH 8.5-9, TSS 4400 mg L-1, dissolved COD 34000 mg L-1, BOD 12000 mg L-1). For the biodegradation of distillery wastewater a mixed culture obtained from cow dung and industry sludge which was kept for 15 to 20 days were used. The performance of the bioreactor for different pH and hydrodynamic behavior of novel reactor was studied. The results show that percentage reduction in COD was 95%. The novel reactor setup increases the active reactor area and decreases the operating cost.