This study was conducted to assess the MSW (Municipal Solid Waste) generated in Hyderabad city for its suitability to make compost product through AB (Aerobic Biological) treatment. Assessment of MSW regarding its generation rate, quantification and characterization decides its suitability for composting process. Three AB treatment reactors R1 (natural air circulation and manually mixed reactor), R2 (compressed air circulation and manually mixed reactor) and R3 (compressed air circulation and mechanically mixed reactor) were designed and fabricated. AB treatment of the segregated food and yard waste reveals that there is no any significant change occurs in the moisture content of the compost product in all the reactors but, significant loss of VS (Volatile Solids) and gain of ash content was observed for reactor R2. Thus, the reactor R2 is the most efficient reactor in comparison to other reactors. Moreover, the mechanical mixing in AB treatment does not significantly increase VS loss. Further the reactor R1 does not consumes electricity and thus can be employed as the solution for converting segregated food and yard waste from MSW into a compost product