Anaerobic fermentation is a widely used technology for resource recovery from municipal sludge (e.g., primary sludge). Micro-aeration is an emerging strategy which can be incorporated into this technology. However, the effect of micro-aeration on the anaerobic fermentation performance and the nutrients transformations are not well known. This study investigated the impact of micro-aeration on the production of volatile fatty acids (VFAs) from primary sludge as well as the simultaneous nitrogen (N) and phosphorus (P) transformations in the system. The obtained results indicated that application of micro-aeration improved the microbial activities and facilitated all the hydrolysis, acetogenesis and methanogenesis processes. Hydrogenotrophic methanogen was enriched by micro-aeration while the acetoclastic methanogenesis was still the dominant CH4 production pathway at gene level. The concentration of VFAs was lower with micro-aeration than in the control system, which could be attributed to the enhanced consumption of VFAs. The simultaneous transformations of N and P were observed with different patterns. Micro-aeration led to removal of up to 131.6 mg/L of N, with occurrence of nitrification and denitrification found to be responsible for the N removal. In contrast, the total P content remained unchanged in the reactor. However, micro-aeration was found to inhibit both extracellular organic-P mineralization and intracellular poly-P degradation, resulting in lower soluble PO43--P and more P distributed in the organic-P fraction in solid phase. This study provides novel insights into the microscopic mechanisms of the micro-aeration on anaerobic fermentation and the simultaneous regulation of N and P release.