This study was carried out to examine degradation characteristics of microalgae Chlorella vulgaris in methane fermentation. We measured COD and VS reduction, gas and methane productivity, VFA (volatile fatty acid), respectively. Then we calculated material balance and hydrolysis rates in soluble and solid material. The substrate concentration was controlled from 14 gCOD$_{cr}$/l to 64 gCOD$_{cr}$/l in batch cultures, and HRT (hydraulic retention time) controlled from 2 days to 30 days in continuous experi- ments. The results were as follows. In batch culture, accumulated gas productivity increased with the increase of the substrate concentration. The SS and VSS was removed all about 30% increase of substrate concentration and the most of the degradable material removed during the first 10 days. The curve of gas and methane production rate straightly increased until substrate concentration is 26 gCOD$_{cr}$/l. In continuous culture experiments, the removal rates at HRT 10days were 20% for total COD and TOC, respectively. At longer HRT, there was no increase in the removal efficiency. At HRT 15 days, the removal rates were 30% for SS and VSS, respectively. Soluble organic materials were rapidly degraded, and so there was no accumulated. Soluble COD concentration was not increase regardless of HRT-increasing. That meaned the hydrolysis was one of the rate-limiting stage of methane fermentation. The first-order rate constants of hydrolysis were 0.23-0.28 day$^{-1}$ for VSS, and 0.07-0.08 day$^{-1}$ for COD.