Due to its extensive application in agriculture as a germinating agent and growth promoter, indole acetic acid (IAA) is present in a variety of aquatic ecosystems. To explore the response of microbial aggregates to exogenous IAA in aquatic ecosystems, periphytic biofilm, a typical microbial aggregate, was exposed to IAA at different concentrations. Results reveal an unexpected concentration-dependent effect of IAA on periphytic biofilm. Concentrations of IAA less than 10 mg/L inhibit periphytic growth, but stimulate growth when the IAA concentration exceeds 50 mg/L. Periphytic biofilm adapts to different IAA concentrations by antioxidant enzyme activation, community structure optimization and carbon-metabolism pattern change, and promotes bioremediation of IAA contaminated water in the process. The removal rates of IAA reached up to 95%–100%. This study reveals the capacity of periphytic biofilm for IAA removal in practice.