Anaerobic bioreactors supplemented with membrane technology have become quite popular, owing to their favorable energy recovery characteristics. In this study, a lab-scale anaerobic Membrane Bioreactor (AnMBR) was assessed in experimental treatments of pre-settled dilute municipal wastewater obtained from a full-scaled wastewater treatment plant. The MBR system was operated in continuous flow mode for 440 days. To evaluate the performance of the AnMBR under various loading rates, the hydraulic retention time (HRT) was reduced in a stepwise manner (from 2 to 0.5 days). Afterward, the mixed liquor suspended solids (MLSS) were reduced from 7,000 to 3,000 mg/L in increments of 1,000 mg/L, resulting in a decrease in solids retention time (SRT) at a constant HRT of 1.0 day. The soluble chemical oxygen demand (SCOD) concentration in the feed varied between 38 and 131 mg/L, whereas the average permeate SCOD ranged between 18 and 37 mg/L, reflecting excellent effluent quality. The AnMBR performance in terms of COD removal proved stable, despite variations in influent characteristics and HRT and SRT changes. The concentration of extracellular polymeric substance (EPS) was reduced with decreases in HRT from 42 to 22 mg VS/mg of MLSS, thereby indicating that the increased biomass concentration biodegraded the EPS at lower HRTs. AnMBR is, therefore, demonstrably a feasible option for the treatment of dilute wastewater with separate stage nitrogen and phosphorus removal processes.