Sludge production is an avoidable problem arising from the treatment of wastewater. The sludge remained after municipal wastewater treatment contains considerable amounts of various contaminants and if is not properly handled and disposed, it may produce extensive health hazards. Application of aquatic worm is an approach to decrease the amount of biological waste sludge produced in wastewater treatment plants. In the present research reduction of the amount of waste sludge from Ahvaz wastewater treatment plant was studied with the aquatic worm Lumbriculus variegatus in a reactor concept. The sludge reduction in the reactor with worm was compared to sludge reduction in a blank reactor (without worm). The effects of changes in dissolved oxygen (DO) concentration up to 3 mg/L (run 1) and up to 6 mg/L (run 2) were studied in the worm and blank reactors. No meaningful relationship was found between DO concentration and the rate of total suspended solids reduction. The average sludge reductions were obtained as 32% (run 1) and 33% (run 2) in worm reactor and 16% (run 1) and 12% (run 2) in the blank reactor. These results showed that the worm reactors may reduce the waste sludge between 2 and 2.75 times higher than in the blank conditions. The obtained results showed that the worm reactor has a high potential for use in large-scale sludge processing.