20 bacterial strains capable of growing on phenol minimal medium were isolated from soil and wastewater by the enrichment culture technique, and among them, one isolate which was the best in the cell growth was selected and identified as Bacillus sp. SH3 by its characteristics. Strain SH3 could grow with phenol as the sole carbon source up to 15 mM, but did not grow in minimal medium containing above 20 mM of phenol. The optimal conditions of temperature and initial pH for growth and phenol degradation were 30$^{circ}$C and 7.5, respectively. This strain could grow on various aromatic compounds such as catechol, protocatechuic acid, gentisic acid, o-, m-, p-cresol, benzoic acid, p-hydroxybenzoic acid, anthranilic acid, phenyl acetate and pentachlorophenol, and the growth-limiting log P value of strain SH3 on organic solvents was 3.1. In batch culture, strain SH3 degraded 97% of 10 mM phenol in 48 hours. In continuous culture under the conditions of 20 mM of influent phenol concentration and 0.050 hr$^{-1}$ of dilution rate, the treatment rate of phenol was 94%.