A novel method for peptide synthesis in an aqueous/organic biphasic system utilizing an surfactant -coated enzyme catalytically active in organic media is proposed. In this method, peptides synthesized in an organic phase are selectively extracted to an aqueous phase. We apply this method to alpha-chymotrypsin-catalyzed synthesis of kyotorphin (anodyne peptide) precursor (Z-TyrArgOEt), and 30 % yield of peptide is achieved (ca. 20 % in aqueous system).