Rhodococcus ruber SD3mutantM1 was almost completely degrade phenol of 1.5 g/L for 72h when its inoculation dosage ranged from2%to 4%. The suitable temperature for phenol-degradation ranged from 30°C to 35°C. The optimum pH was from 7.0 to 8.0. The degradation of phenol occurs mainly in the logarithmphase of growth. Cells of Rhodococcus ruber SD3 mutant M1 was immobilized by using alginate calcium and polyvinyl alcohol complex. The optima of alginate sodiumconcentration, polyvinyl alcohol concentration and bead size were 1%, 1%and 6mm, respectively. The immobilized cells degrade over 98%of phenol (2.0 g L-1) for 72 hours during five cycles use. These results paved a road for the bioremediation of wastewater containing phenol.