For the biological treatment of industrial wastewater containing high concentration of phenol, isolation and characterization of phenol - degrading bacterium were carried out. A bacterial strain P2 capable of degrading phenol was isolated from contaminated soils by enrichment culture technique and identified as the genus Rhodococcus by morphological, cultural, biochemical characteristics, and Biolog system. The optimal medium composition and cultural conditions for the growth and degradation of phenol by Rhodococcus sp. P2 were 0.1% of (NH$_4$)$_2$SO$_4$, 0.2% of KH$_2$PO$_4$, 0.25% of Na$_2$HPO$_4$ㆍ12$H_2O$, 0.2% of MgSO$_4$ㆍ7$H_2O$, and 0.008% of CaC1$_2$ㆍ2$H_2O$ along with initial pH 8.5 at 3$0^{circ}C$. Rhodococcus sp. P2 could grow with phenol as the sole carbon source up to 1,800 ppm in batch cultures, but did not grow in medium containing above 2,000 ppm of phenol. When 800 ppm phenol was given in the optimal media, Rhodococcus sp. P2 completely degraded it within 24 h. Meanwhile, 1,800 ppm of phenol was degraded within 9 days. Rhodococcus sp. P2 could utilize toluene, n-hexane, xylene and benzene as sole carbon source .