Aerobic biodegradation of diesel fuel (DF)-contaminated wastewater is carried out in a three-phase fluidized bed reactor under unsteady and steady state conditions. The solid phase lava rock particles, which act as the support for the biomass, are fluidized by the upward flows of influent wastewater, and air. The results show that the reactor under unsteady state operation achieved 100% DF removal from synthetic wastewater loaded with 0.43–1.03 kg/m 3 day of DF. An average of over 97% of the influent chemical oxygen demand (COD) was also removed from the wastewater with COD concentrations in the range, 547–4025 mg/L. For influent COD concentrations up to 1345 mg/L, the removal is greater than 90%. Under steady state operation, the reactor was able to remove 100% of the DF, and an average of 96% of the COD from the wastewater. It had approximately 200 mg/L of DF, and 1237 mg/L of COD at a low hydraulic residence time of 4 h. In general, the results demonstrate that the reactor is very efficient, and requires short residence times to remove both DF and COD from heavily contaminated wastewater.