The global population’s continuous growth has led to increased resource consumption, particularly water resources, resulting in potential shortages and environmental concerns. Industrialization has further exacerbated this issue by intensifying the demand for freshwater and contaminating water sources. To address this issue industry-led initiatives for wastewater reduction and treatment, and technological advancements are crucial. Within wastewater systems, lipids present both opportunities and challenges. They can be converted into bioenergy but can disrupt anaerobic wastewater treatment processes. Anaerobic digestion (AD) plays a key role in sustainable development, producing renewable energy, recycling nutrients, and minimizing sludge production. New technologies like anaerobic membrane bioreactors (AnMBR) have emerged to address lipid-intensive wastewater treatment. This research focused on the role of solids retention time (SRT) in AnMBR operation, sludge filterability, and membrane filtration performance. Different SRT configurations had a significant impact on LCFA conversion, with a 40-day SRT showing slightly enhanced biological conversion. The study also highlighted the influence of LCFA on anaerobic sludge processes, with lipid-acclimated sludges demonstrating better LCFA degradation potential. In summary, this doctoral research emphasized the importance of SRT and the role of LCFAs in anaerobic digestion processes, shedding light on prospects and challenges in treating lipid-rich dairy wastewater using AnMBR technology.