Combined biological and physicochemical process was selected for treatment of laundry wastewater. The results show that after microbial adaptation, almost 91% of COD was removed at food to microorganism (F/M) ratio of 0.12 gBOD/gMLSS·d. Dehydrogenase activity of the biomass showed an increasing trend and finally reached 3.8 μgTFgbiomass.d corresponding to the highest process performance. 16SrRNA fragment and phylogenetic analysis identified Pseudomonas pharmacofabricae and Bacillus spp. as the dominant bacteria. The effluent of the biological process was then injected into the UV/O3 process for complete removal of residual COD and detergent. Finally, microfiltration and ultrafiltration were used to remove any remaining suspended solids. The operating cost analysis showed that 0.65 €/m3 treated wastewater is required for treatment of the laundry wastewater. Accordingly, the suggested combination of the biological and physicochemical process could be a promising and highly efficient process for treatment and reuse of laundry wastewater.