Huge quantities of palm tree residues are available annually in Saudi Arabia; they are often disposed of by burning, leading to large environmental pollution and health problems. Enclosed composting may be a successful method for utilizing these residues. Effective composting in a rotary bioreactor depends on the composting materials and the frequencies of the rotation–aeration process. Here, we attempted to determine the optimal method for composting these residues in a bioreactor. Four identical pilot-scale bioreactors (D1–D4) were used. The respective aeration–rotation frequencies were continuous (D1), and 20 min per 1 h (D2), 2 h (D3), and 3 h (D4); the rotation speed of the bioreactors was 3 rpm. Three periods were analyzed; their names and their respective lengths for D1, D2, D3, and D4 were as follows: the lag period was 10 h for each, the mesophilic periods were 13, 14, 89, and 231 h, and the thermophilic periods were 0, 55, 71, and 17 h. The peak compost temperatures (Tc, max) for D1, D2, and D3 were 65.2, 57.2, and 46.9 °C, and were achieved at 36, 71, and 108 h of operation, respectively. In D1, Tc quickly declined after reaching Tc, max due to limited microbial activity at Tc > 60 °C. In D2, a Tc of 50–57.2 °C was maintained for 61 h, and the highest organic matter degradation (OMD) of 0.30 was achieved. During the composting period, the carbon to nitrogen (C/N) ratio and moisture contents (MC) remained in the optimal ranges for microorganisms and did not affect the composting process. The results indicated that combined aeration–rotation for 20 min every hour (D2) gave the best results for composting palm tree residues, it ensured the hygiene safety of the end product, and it also consumed less power for aeration and rotation than D1.