A hydrophilic ionic liquid, 1-butyl-3-methylimidazolium (L)-lactate ([bmim][lactate]), was successfully employed as a co-solvent to improve the biodehydrogenation of steroid $11{eta}$-hydroxyl medroxyprogesterone (HMP) to pregna-1,4-diene-$6{alpha}$-methyl-3,20-dione-$11{eta}$,$17{alpha}$-dihydroxy (PDMDD) in an aqueous-organic biphasic system using Arthrobacter simplex UR106 cells. First, a suitable biphasic system was constituted, composed of toluene and Tris-HCl buffer (0.05 mol/L, pH 7.6) at a 0.4 ($V_{org}/V_{aq}$) volumetric phase ratio. Investigation of biodehydrogenation with the addition of [bmim][lactate] to the aqueous phase was then performed. The results demonstrate that biodehydrogenation is more efficient in a biphasic system containing 2% [bmim][lactate] as a co-solvent compared to an aqueous-toluene two-phase system. Higher bioconversion (83.2% versus 56.4%) was observed after 16 h at a substrate concentration of 80 mg HMP in 8 mL of toluene.