Pilot-scale experiments were carried out to compare sludge reduction induced by Oligochaete in a submerged membrane bioreactor (MBR) and a conventional activated sludge (CAS) reactor for 345 d. Worm growth in the CAS reactor was much better than in the MBR. The average worm density of the aeration tank in the CAS reactor was 71 total worms/mg of volatile suspended solids (VSS), much higher than that in the MBR (10 total worms/mg of VSS). Worms did not naturally produce in the MBR, and the dominant worm type in the MBR depended on sludge inoculation from the CAS reactor. Only two types of worms were found in the MBR, Aeolosoma hemprichicii and Nais elinguis. Worm presence and disappearance in the MBR alternated. Worms in the CAS reactor occurred nearly throughout the operating period and were continuously maintained at over 30 total worms/mg of VSS in the aeration tank for 172 d. Three types of worm were found in the CAS reactor, A. hemprichicii, Pristina aequiseta, and N. elinguis, but P. aequiseta was present only occasionally. The alternating dominance of worm types in both reactors changed between Aeolosoma and Nais, and the time of Aeolosoma dominance was longer than that of Nais dominance. Worm growth in the MBR contributed to neither sludge reduction nor improvement of sludge settling characteristics because of low density. But worm presence and bloom in the CAS reactor greatly decreased sludge yield and improved sludge settling characteristics at high density. Both the average sludge yield (0.17 kg of suspended solids (SS)/kg of chemical oxygen demand removed (CODremoved)) and sludge volume index (60 mL/g) in the CAS reactor were much lower than those in the MBR (0.40 kg of SS/kg of CODremoved and 133 mL/g). Nais had more potential for sludge reduction than Aeolosoma. Worm growth had little impact on effluent quality in the MBR but affected effluent quality very much in the CAS reactor.