BACKGROUND: Polycyclic aromatic hydrocarbons (PAHs) are potential hazards in the environment owing to their toxic, carcinogenic and recalcitrant nature. Biodegradation of these compounds, although effective compared with other treatment techniques, is problematic owing to its low aqueous solubility and negligible bioavailability. The present study reports a novel method for biodegradation of PAHs using an encapsulated form of the pollutant in chitosan-coated alginate-polyvinyl alcohol (PVA) beads. RESULTS: A suitable combination of 3% (w/v) PVA, 100 g L-1 non-ionic surfactant Brij 30 and 0.3 silicone oil fraction in the formulation was found to be optimal in the preparation of stable emulsion. The emulsion obtained was admixed with alginate (3% w/v) to prepare suitably sized microspheres by an emulsion gelation technique, which were later coated with chitosan to yield a maximum pyrene encapsulation efficiency of 90.7%. Pyrene in silicone oil at concentration as high as 2 g L-1, when delivered through the chitosan coated alginate-PVA beads, was completely degraded by Mycobacterium frederiksbergense within 10 days without any significant lag phase. CONCLUSION: Using chitosan-coated alginate-PVA beads sustained release of pyrene and subsequent biodegradation by M. frederiksbergense were achieved. Using the present system, complete degradation of pyrene was attained even at its very high initial concentration and within a short time period. Further advantage offered by this system seems to be negligible toxic effect of pyrene and solvents on the degrading microorganisms since these were in an encapsulated form and were not in direct contact with the organism. (C) 2010 Society of Chemical Industry