Phenols are toxic to all types of organisms. Two bacterial strains capable of utilizing phenol as a sole carbon source were isolated from the phenol bearing industrial wastewater. Based on the biochemical test results the organisms were identified as Pseudomonas cepacia and Bacillus brevis. The organisms were very efficient in phenol degradation, the lag phase increased with increase in phenol concentration. The well-acclimatized cultures of P. cepacia and B. brevis degraded 2500 and 1750 mg l(-1) of phenol in 144 h, respectively. The organisms degrade phenol even in the presence of toxicants like thiocyanate, sulphide and cyanide. The organisms can be effectively used for treating high strength phenol containing thiocyanate, sulphide and cyanide. The P. cepacia degrades phenol with a faster rate than B. brevis. P. cepacia can be used effectively for treating high strength phenolic wastewater. (c) 2005 Elsevier B.V. All rights reserved.