Benzotriazole derivatives are widely used corrosion inhibitors and their fate during wastewater treatment processes is unknown. The purpose of this research was to study the toxic effects and fate of the two commercially significant benzotriazole isomers used in aircraft deicing fluids (4‐, and 5‐, methylbenzotriazole [MeBT]) during anaerobic digestion. Experiments were executed in microcosms using mesophilic anaerobic biomass co‐digesting wastewater sludge and propylene glycol. Sorption of MeBT to digesting solids could be approximated with a Freundlich model, and no anaerobic breakdown of either MeBT isomer was detected. Digesters fed more than 300 mg/L MeBT responded with a significant decrease in methanogenic microbial activity and volatile solids production and a concomitant increase in accumulation of volatile fatty acids. Direct microscopic measurements using fluorescent phylogenetic probes applied to digesting biomass revealed that members of both Archaea and Bacteria domains were sensitive to MeBT. Granular activated carbon (GAC) (volatile solids: GAC = 10%) reduced the apparent toxic effects of MeBT; GAC addition nearly restored the baseline activity of digesters fed MeBT (500to 1000 mg/L).