Due to environmental burden and human health risks in developing countries, the treatment of decentralized domestic wastewater has been a matter of great concern in recent years. A novel pilot-scale three-stage anaerobic wool-felt filter reactor (AWFR) was designed to treat real decentralized domestic wastewater at seasonal temperature variations of 8 to 35 • C for 364 days. The results showed that the average chemical oxygen demand (COD) removal efficiencies of AWFR in summer and winter were 76 ± 7.2% and 52 ± 5.9% at one day and three days Hydraulic Retention Time (HRT), respectively. COD mass balance analysis demonstrated that even though COD removal was lower in winter, approximately 43.5% of influent COD was still converted to methane. High-throughput MiSeq sequencing analyses indicated that Methanosaeta, Methanobacterium, and Methanolinea were the predominant methanogens, whereas the genus Bacillus probably played important roles in fermentation processes throughout the whole operation period. The performance and microbial community composition study suggested the application potential of the AWFR system for the pretreatment of decentralized domestic wastewater.