Role of white radish peroxidase has been investigated in the treatment of water contaminated with phenols, particularly $alpha$-naphthol. Water polluted with $alpha$-naphthol was treated with white radish peroxidase under various experimental conditions. The treatment of $alpha$-naphthol polluted water by this enzyme in presence of polyethylene glycol enhanced its removal. Studies carried out in absence of polyethylene glycol showed only 36% of $alpha$-naphthol removal however, 96% of it was removed in presence of 0.1 mg/mL of polyethylene glycol in 100 mM sodium phosphate buffer, pH 6.5, and 0.75 mM $H_2O_2$ at $40^{circ}C$. The other phenols oxidized and removed from waste water under similar experimental conditions were 18%, a-cresol; 30%, e-chlorophenol; 62%, e-bromophenol; 20%, benzyl alcohol; 21%, quinol; 38%, 2,6-dichlorophenol; 13%, 2,4-dichlorophenol; and 2%, native phenol. Mixtures of different phenolic compounds removed under identical treatment conditions were 63%, A; 40%, B; 52%, C; 41%, D; 72%, E; 66%, F; and 72%, G. Thus, peroxidase in presence of an additive, polyethylene glycol could be a suitable tool for the removal of phenolic compounds from industrial effluents.