In this study, aerobic granular reactor (AGR) was used to treat landfill leachate by changing the concentrations of chemical oxygen demand (COD) (668 ± 110–1149 ± 93 mg/L), ammonia (NH3-N) (30 ± 3.3–48 ± 1.3 mg/L), and phosphorus (PO4-P) (147 ± 18–221 ± 17 mg/L). The average COD removal was gradually reduced from 81 to 75%, increasing COD concentrations from 668 ± 110 to 1149 ± 93 mg/L. In phase I, the maximum removal of COD (94%) and NH3-N (85%) were observed at influent concentrations of 668 ± 110 mg/L and 30 ± 3.3 mg/L, respectively. Significant removal of PO4-P was observed, resulting in a maximum of up to 87%, further reducing up to 34% due to an increase in influent PO4-P concentration. The SVI30 reduced from 77 mL/g to 24.15 mL/g towards the end of phase III indicates the formation of granular biomass. The stability of AGR was also investigated in extreme conditions like shut-down and shock-loading phases. The treatment of real leachate diluted with wastewater (~ 20:80% v/v) using AGR showed a significant COD, NH3-N, and PO4-P removal of 62–65%, 61–93%, and 56–64%, respectively. Proteobacteria and Planctomycetes were identified as the predominant (80%) bacterial community in aerobic granules responsible for removing COD, NH3-N, and PO4-P from leachate using AGR. The maximum biodegradation rate (rmax) and half-saturation constant (Ks) in AGR were determined as 123.5 mg/L h and 309 mg/L, respectively.