Desugared molasses (DM), a syrup residue from beet-molasses, was investigated for biogas production in both batch and in continuously-stirred tank reactor (CSTR) experiments. DM contained 2–3 times higher concentration of ions than normal molasses, which could inhibit the biogas process. The effect of sodium and potassium concentration on biogas production from manure was also investigated. Fifty percent inhibition occurred at sodium and potassium concentration of 11 and 28 g/L, respectively. The reactor experiments were carried out to investigate the biogas production from DM under different dilutions with water and co-digestion with manure. Stable operation at maximum methane yield of 300 mL-CH4/gVSadded was obtained at a mixture of 5% DM in cow manure. The biogas process was inhibited at DM concentrations higher than 15%. Manure was a good base substrate for co-digestion, and a stable anaerobic digestion could be achieved by co-digesting DM with manure at the concentration below 15% DM.