The development of efficient and low-consumption wastewater upgrading process is currently at the forefront of the wastewater treatment field. In this study, a novel wastewater treatment process based on powder carriers was proposed. Three systems, namely the activated sludge (AS) system, powder carrier (PC) system, and moving bed biofilm reactor (MBBR) system, were established and operated for over 140 days to treat real municipal wastewater. The characteristics and differences between the three systems were comprehensively investigated. The results suggested that the PC system exhibited notable advantages in nitrogen and phosphorus removal, especially under high influent load and low aeration conditions. The PC system, characterized by a higher nitrification rate compared to the MBBR system and a higher denitrification rate compared to the AS system, contributed to the stable nitrogen removal performance. The particle size of the zoogloea increased under the linkage of the powder carriers, and the mean size of micro-granules reached 170.88 μm. Large number of hydrophobic functional groups on sludge surface, coupled with increased protein content in EPS, further promoted sludge aggregation. Micro-granules formation improved settling performance and enhanced the abundance and activity of functional microbes. A significant enrichment in denitrifying bacteria and denitrifying phosphorus accumulating bacteria was observed in PC system. Up-regulation of the napA, narG, and nosZ genes was responsible for efficient nitrogen removal of the PC system. Moreover, a higher abundance in polyphosphate phosphotransferase (2.11 %) was found in PC system compared with AS and MBBR systems. The increase in the enzymes associated with poly-β-hydroxybutyrate (PHB) synthesis metabolism in PC system provided the energy for denitrification and phosphorus removal processes.