The reduction and stabilization of biodegradable waste were studied using three operational stages in an aerobic stabilization system. The system used for mechanical/biological treatment utilized two-shaft screws in multiple box reactors. In the first operational stage, 50-kg batches of biodegradable waste were charged in each of the three reactors, with peat moss used as a bulking agent. Analysis revealed that peat moss can be used at this initial stage, based on the observed increase in temperature and carbon dioxide levels. The second stage of operation involved adding 100 kg/day of biodegradable waste to the first reactor. It was confirmed that a continuous reaction is possible by the addition of more waste. In the third stage of operation, 20 kg/day of the 100 kg/day of biodegradable waste feed was replaced with material fed back from the third reactor. At this stage, final product was also removed from the third reactor. The temperature was not controlled, and up to 8%–9% carbon dioxide was formed, enabling normal activation of decomposition. This three-stage operational test confirmed the expected decomposition of organic matter and biodegradable materials. The rate of mass reduction calculated for the final product compared with the input amount was 94.3%, which confirmed that this system would be a useful means for the reduction and stabilization of biodegradable waste. This study also measured the water content of the material in the reactors: the water content decreased as the reaction progressed. This indicated that the activation of microorganisms did not occur sufficiently in the second and third reactors. Future studies of methods to control the internal water content of each reactor should improve the decomposition efficiency.