The aim of the present study was to assess the start-up performance of aerobic granular sludge for the treatment of low-strength (COD <200 mg L−1) domestic wastewater by the application of a diatomite carrier. The feasibility was evaluated in terms of the start-up period and stability of the aerobic granules as well as COD and phosphate removal efficiencies. A single pilot-scale Sequencing Batch Reactor (SBR) was used and operated separately for the control granulation and granulation with diatomite. Complete granulation (granulation rate ≥ 90%) was achieved within 20 days for the case of diatomite with an average influent COD concentration of 184 mg L−1. In comparison, control granulation required 85 days to accomplish the same feat with a higher average influent COD concentration (253 mg L−1). The presence of diatomite solidifies the core of the granules and enhances physical stability. Diatomite granules recorded the strength and SVI of 18 IC and 53 mL/g SS which clearly superior to control granulation (19.3 IC, 81 mL/g SS). Quick start-up and achievement of stable granules lead to an efficient COD (89%) and phosphate removal (74%) in 50 days of bioreactor operation. Interestingly, this study revealed that diatomite has some special mechanism in enhancing the removal of both COD and phosphate. The result of this research implies that the advanced development of granular sludge by using diatomite can provide a promising low-strength wastewater treatment.