A two-phase bioreactor consisting of hexadecane dispersed in an aqueous, cell-containing medium (organic fraction = 0.33) was used to trap toluene vapours from an air stream. The affinity for toluene by the solvent resulted in high efficiency of removal and transfer to the aqueous phase based on equilibrium transfer. The system was readily able to handle a loading capacity of 748 mg l(-1) h(-1) at a toluene degradation efficiency of greater than 98%.