The algae–bacterial granular sludge (ABGS) technology has garnered significant attention due to its remarkable attributes of low carbon emissions. To investigate the performance of the ABGS system under various substrate loading rates, the parallel photo-sequencing batch reactors (P1 and P2) were set up. The results indicated that chlorophyll-a content and extracellular polymeric substance content were measured at 10.7 ± 0.3 mg/L and 61.4 ± 0.7 mg/g SS in P1 under relatively low substrate loading rate (0.9 kg COD/m3/d and 0.09 kg N/m3/d). Moreover, kinetic study revealed that the maximal specific P uptake rate for P1 reached 0.21 mg P/g SS/h under light conditions, and it achieved 0.078 mg P/g SS/h under dark conditions, highlighting the significant role on phosphorus removal played by algae in the ABGS system. The microbial analysis and scanning electron microscopy confirmed that filamentous algae predominantly colonize the surface in P1, whereas spherical bacteria dominate the surface of granular sludge in P2. Additionally, a diverse array of microorganisms including bacteria, algae, and metazoa such as Rotifers and Nematodes were observed in both systems, providing evidence for the establishment of a symbiotic system. This study not only confirmed the ability of ABGS for efficient N and P removal under different substrate loading conditions but also highlighted its potential to enhance the ecological diversity of the reaction system.