A bacterial strain, designated T116, degrading terephthalic acid (TPA) was isolated from the soil around Taegu industrial area into which dye works wastewater flow. The isolate was identified as pseudomonas sp. based on its morphological and physiological characteristics. Degradation of TPA by the strain T116 was confirmed with UV scanning and HPLC. About 90% and 98% of TPA were degraded after 36 and 60 hours, respectively, during the culture in a liquid medium containing 0.1% TPA. Addition of KH2PO4 at a final concentration of 100ppm enhanced the chemical oxygen demand (COD) removal rate about 50% from dye works wastewater by Pseudomonas sp. T116. Optimum pH and temperature for COD reduction from wastewater were 7.0 and 3$0^{circ}C$, respectively. The bacterium was applied to the continuous culture for the treatment of dye works wastewater whose TPA concentration and CODMn were 2,200ppm and 1,620ppm, respectively. It was observed that 90-95% of COD was eliminated after 4 days culture in the continuous culture with a retention time of 37 or 47 hours.