Sludge foaming is a common problem in wastewater treatment plants negatively affecting operation of anaerobic digestion reactors. Therefore, in common practice, foam is removed from reactors without being fermented, leading to increase in sludge mass for disposal. However, foam is rich in lipids and can be a good source of methane if operational problems can be overcome. In this paper, in a two-stage experiment, we show that foam disintegration with free nitrous acid (FNA) can boost methane production and decrease foaming potential. In the first stage, the biochemical methane potential (BMP) of foam was evaluated to be higher by 19–63% (191-263NmL/gVS) than the BMP of waste activated sludge (WAS) (161 ± 1NmL/gVS) confirming previous assumptions. The main findings of the second stage (continuous experiments) are: (1) foam and WAS co-digestion leads to sludge stratification and thickened biomass accumulation in the upper part of the reactor, (2) FNA disintegration destroyed foam structure, resulting in lower biomass stratification and 14% higher methane production (134 mL/gVS) than observed in the reference reactor, (3) FNA disintegration of both substrates (foam and WAS) does not provide noticeable benefits in terms of biomass stratification. However, it does enhance methane production to 140 mL/gVS and sludge mineralization efficiency. A significantly higher impact of FNA on methane yield from foam than WAS was attributed to the high content of M.parvicella and the ability of these bacteria to adsorb and accumulate lipids. Anaerobic digestion of FNA disintegrated foam leads to substantial benefits in terms of methane production, reactor volume, and reagents consumption.