The objective of this studywas to investigate the performance and process stability of a novel dryanaerobic digestion system. For this purpose, a dry anaerobic digester (100 L)with percolate tank (200 L) was designed at pilot scale. Municipal solid wasteswere fed into the dry fermentation unit and system was operated withintermittent recycling of leachate through percolation unit back to the dryfermentation unit twice a day. Gas production in both unit was recorded dailyand gas content and leachate analysis were carried out periodically. A batchfeeding of solid waste (17.5 kg waste) having less than 5 cm particle size witha dry matter of 13% and organic dry matter of  85%  wascarried out and process was operated for 60 days. Results indicated that 560 Lmethane per kg organic dry matter was produced. This corresponds to biogasproduction 119 m3 per ton of wet solid waste. It was also observedthat the main gas production took place in percolate tank and the soliddigester acted as a hydrolysis and acid reactor indicated by the low gasproduction and acidic leachate characteristics. There were also almost nodigestate generation which eliminates costly post treatment units before thedischarge of digestate, which is a critical problem for wet digestioncounterpart.