In the present study, attempts are made to optimize digestion time, initial feed pH, feed temperature, and feed flow rate (organic loading rate, OLR) for maximum yield of methane gas and maximum removal of chemical oxygen demand (COD) and biological oxygen demand (BOD) of sugar industry wastewaters in three-phase fluidized-bed bioreactor. Methane gas is analysed by using flame-ionisation detector (FID). The optimum digestion time is 8 h and optimum initial pH of feed is observed as 7.5. The optimum temperature of feed is 40°C and optimum feed flow rate is 14 L/min with OLR 39.513 kg COD/m3 h. OLR is calculated on the basis of COD inlet in the bioreactor at different flow rates. The maximum methane gas concentration is 61.56% (v/v) of the total biogas generation at optimum biomethanation process parameters. The maximum biogas yield rate is 0.835 m3/kg COD/m3 h with maximum methane gas yield rate (61.56%, v/v) of 0.503 m3/kg COD/m3 h at optimum parameters. The maximum COD and BOD reduction of the sugar industry wastewaters are 76.82% (w/w) and 81.65% (w/w) at optimum biomethanation parameters, respectively. © 2010 Canadian Society for Chemical Engineering.