A novel mixed bacterial consortium, BACON-38, was developed with efficient heterotrophic nitrification, aerobic denitrification, and phosphorus accumulation abilities. The BACON-38 exhibited efficient NH4+-N, NO3−-N, PO43−-P, and COD removal from real wastewater with removal efficiencies of 93.4 ± 1 %, 90 ± 0.75 %, 87.8 ± 0.25 % and 92 ± 1.5 %, respectively, under aerobic condition. Further, efficient removal of these pollutants from synthetic wastewater was also achieved by employing this consortium. Optimal conditions for maximum N and P removal efficiency were identified through response surface methodology (dissolved oxygen: 3.75 ± 0.5 mg L−1, pH: 7.5 ± 0.55, C/N ratio: 8.96 ± 0.75, temperature: 23.5 ± 1.25 °C). Amplification of key genes (amoA, hao, napA, narG, nirK, nirS, ppk) and enzyme expression confirmed simultaneous nitrification, denitrification, and phosphorus removal by BACON-38. The proposed nitrogen and phosphorus removal pathway aligned with the N and P balance, showing their assimilation into intracellular components. These results indicate that BACON-38 has significant potential for effectively removing nitrogen and phosphorus, making it a promising and sustainable solution for wastewater remediation.