The γ-ray spectra accompanying the decay of 154Eu (16 yr) has been studied by using an isotopically separated 154Eu source as well as a Ge(Li) Compton suppression spectrometer. Over 150 γ rays have been detected and can be ascribed to 32 different levels. It is suggested that the positive-parity levels can be accounted for by assignment to one- and two-phonon vibrational bands, and that the negative-parity levels form the bands of the fragmented octupole state. The level structure of the K=0 and 1 members can be accounted for by assuming a strong Coriolis coupling between them. The relative E2 transition probabilities from the one- and two-phonon bands cannot be reconciled with simple two-band mixing theory. Properties associated with zK indicate that zK is not a good quantity in this nucleus, because of the strong mixing of the β- and γ-vibrational bands, and that its use in the past may have given false results for properties associated with it. The level energies in keV are: ground-state band: 123.14(2+), 371.18(4+), and 717.96(6+)β band: 680.71(0+), 815.55(2+), and 1047.65(4+)γ band: 996.32(2+), 1127.90(3+), and 1263.94(4+)2β or M band: (1292.7(0+)), 1418.36(2+), and (1698.2(4+))βγ band: 1531.39(2+), 1660.94(3+), and 1790.4(4+)K=0 octupole state: 1241.34(1-), 1251.48(3- ), and 1364.2(5-)K=1 octupole state: 1509.1(1-), 1397.53(2- ), and 1616.72(3- ), and 1559.68(4-)K=2 octupole state: 1719.62(2-), 1796.78(3- ), and (1861.4(4-)). Other levels are at 1277.6, (1415.6), 1645.93, 1770.3, 1838, and 1894.69. The K=2 octupole state is consistent with Solov'ev and co-workers' assignment of a nearly pure two-quasiparticle configuration of  p, while the K=1 state is more consistent with its being of nearly pure  p two-quasiparticle configuration. Consideration is given to a rotation-vibration Coriolis-type interaction between the K=0 and 1 bands and a proposed pseudo-rotor-particle-coupling Coriolis-type interaction between the K=1 and 2 bands of the octuple state. It is suggested that the levels at 1531.39, 1660.94, and 1790.4 keV form a βγ- coupled second vibrational band.