In this study, a bacterial Bacillus sp. CGMCC no. 4196 was isolated from mud. This strain exhibited the ability to degrade high concentration of 3-chloropropionate (3-CPA, 120 mM) or 3-chlorobutyrate (30 mM), but not chloroacetate or 2-chloropropionate (2-CPA). The growing cells, resting cells, and cell-free extracts from this bacterium had the capability of 3-CPA degradation. The results indicated that the optimum biocatalyst for 3-CPA biodegradation was the resting cells. The 3-CPA biodegradation pathway was further studied through the metabolites and critical enzymes analysis by HPLC, LC-MS, and colorimetric method. The results demonstrated that the metabolites of 3-CPA were 3-hydroxypropionic acid (3-HP) and malonic acid semialdehyde, and the critical enzymes were 3-CPA dehalogenase and 3-HP dehydroxygenase. Thus, the mechanism of the dehalogenase-catalyzed reaction was inferred as hydrolytic dehalogenation which was coenzyme A-independent and oxygen-independent. Finally, the pathway of beta-chlorinated aliphatic acid biodegradation could be concluded as follows: the beta-chlorinated acid is first hydrolytically dehalogenated to the beta-hydroxyl aliphatic acid, and the hydroxyl aliphatic acid is oxidized to beta-carbonyl aliphatic acid by beta-hydroxy aliphatic acid dehydroxygenase. It is the first report that 3-HP was produced from 3-CPA by beta-chlorinated aliphatic acid dehalogenase.