Enzymatic hydrolytic degradation of aliphatic polyesters in organic solvents has been examined. The degradation of poly(epsilon -caprolactone) took place using Candida antarctica lipase as catalyst in toluene at 60 degreesC to give oligomers with molecular weight of less than 500. The degradation behavior catalyzed by lipase was quite different than an acid-catalyzed degradation (random bond cleavage of polymer). After the removal of the solvent from the reaction mixture, the residual oligomer was polymerized in the presence of the same catalyst of lipase. These data provide a basic concept that the degradation-polymerization could be controlled by presence or absence of the solvent, providing a new methodology of plastics recycling.