In this study it was investigated whether the CIRCOX® airlift technology with integrated denitrification was suitable to treat municipal wastewater. The standard CIRCOX® reactor was extended with an anoxic compartment. The sludge on carrier is circulated alternately over the anoxic and oxic compartments by means of an airlift pump. The study was performed in two pilot reactors, a standard CIRCOX® reactor and a CIRCOX® reactor with integrated denitrification. Concerning BOD conversion and nitrification, no differences between the two systems were observed. It was shown that both BOD and nitrogen were removed efficiently. In the effluent, mean soluble BOD concentrations of 7 mg/l were attained at varying COD loading rates. Nitrification was complete in both reactors at temperatures above 15°C and at COD conversion rates of more than 2.5 kg COD/m3/d. Nitrification rates below 15°C were higher as compared to a low loaded activated sludge system. Substrate conversion rates were found to be constant throughout the denitrifying reactor. Denitrification matched the rates theoretically feasible. This could be achieved by controlling the recirculation and the aeration in relation to the loading rate. It can be concluded that the denitrifying CIRCOX® airlift technology seems to be an interesting alternative to treat municipal wastewater.