The feasibility of a novel sludge-bed anaerobic membrane bioreactor (SB-AnMBR) configuration for treating a waste stream from a dissolving pulp production industry was evaluated. The waste stream, called prehydrolysis liquor (PHL), is generated after the wood chips are subjected to high temperature steam to remove unwanted hemicelluloses. The PHL with total chemical oxygen demand (COD) of approximately 100 g/L contained mainly sugars, furfural, lignin, and acetic acid. The SB-AnMBR was fed with the PHL at organic loading rates in a range of 0.8 to10 kg-COD/(m3·d). The COD removal efficiency of more than 85% and an average rate of methane production of 0.35 m3/(kg-COD·d) were observed at each loading rate. No detectable sugars or furfural were present in the treated effluent from SB-AnMBR. Lignin removal varied from 60 to 90%. Flat-sheet membranes performed well with one fouling event during first 400 days of operation.