A pilot-scale experiment of a down-flow hanging sponge (DHS) reactor for treatment of low-strength municipal wastewater was conducted over 1 year in Bangkok, Thailand, to establish an appropriate method for treatment under tropical climate conditions. Municipal wastewater with an average BOD of 19 mg/L was fed directly into the DHS reactor. Superior effluent quality (5.1 ± 3.4 mg/L TSS, 21.1 ± 9.0 mg/L COD, 2.8 ± 1.4 mg/L BOD, and 4.1 ± 1.0 mg/L TN) was achieved at a hydraulic retention time (HRT) of 1 h under an average temperature of 30°C. The DHS reactor reached an actual HRT of 19.0 min, indicating good contact efficiency between wastewater and retained sludge. The DHS reactor retained dense sludge at 15.3-26.4 g VSS/L based on the sponge media volume. The sludge activity in terms of specific oxygen uptake rate was good. Excess sludge was produced as 0.051 g TSS/g COD removed (0.11 g TSS/g BOD removed), and a good SVI of 28 mL/g was observed. The sufficient performance was attributed to dense sludge with high activity, regardless of the low-strength wastewater. Overall, the DHS was advantageous owing to its simple operation, lack of operational problems, and low power consumption.