Whole-cell biocatalysis to oxidize naphthalene to 1-naphthol in liquid-liquid biphasic systems was performed. Escherichia coli expressing TOM-Green, a variant of toluene ortho-monooxygenase (TOM), was used for this oxidation. Three different solvents, dodecane, dioctyl phthalate, and lauryl acetate, were screened for biotransformations in biphasic media. Of the solvents tested, lauryl acetate gave the best results, producing 0.72 ؎ 0.03 g/liter 1-naphthol with a productivity of 0.46 ؎ 0.02 g/g (dry weight) cells after 48 h. The effects of the organic phase ratio and the naphthalene concentration in the organic phase were investigated. The highest 1-naphthol concentration (1.43 g/liter) and the highest 1-naphthol productivity (0.55 g/g [dry weight] cells) were achieved by optimization of the organic phase. The ability to recycle both free cells and cells immobilized in calcium alginate was tested. Both free and immobilized cells lost more than ϳ60% of their activity after the first run, which could be attributed to product toxicity. On a constant-volume basis, an eightfold improvement in 1-naphthol production was achieved using biphasic media compared to biotransformation in aqueous media.Biocatalysis has emerged as an important technology in industrial organic synthesis for the production of chemical synthons and high-value products (29,34,37). Biocatalysis offers the advantage of performing reactions under mild conditions and provides an environmentally benign approach for chemical reactions (1,38). Oxygenases are a class of enzymes that have great potential and versatility for catalyzing reactions that are generally not accessible by chemical routes with high regio-, stereo-, and enantioselectivities (6,27,42,43). Oxygenases introduce either one or two atoms of molecular oxygen into organic molecules using NADH or NADPH as a cofactor. To eliminate the addition of a costly cofactor, whole cells expressing oxygenases are generally used (34,43).One of the potential applications of biocatalysis utilizing oxygenases is the oxidation of naphthalene to 1-naphthol. 1-Naphthol has wide applications in the manufacture of dyes, drugs, insecticides, perfumes, and surfactants (2, 7, 17). Tao et al. (39) have compared the reaction rates and regioselectivities of various wild-type and modified monooxygenases for the oxidation of naphthalene to 1-naphthol. Of the monooxygenases tested, the best enzyme for the oxidation of naphthalene to 1-naphthol was a toluene ortho-monooxygenase (TOM) variant, TomA3(V106A), also known as TOM-Green. TOM was isolated from Burkholderia cepacia G4 and consists of an ␣ 2  2 ␥ 2 hydroxylase (encoded by tomA1, tomA3, and tomA4) with two catalytic oxygen-bridged binuclear iron centers, an NADH-oxidoreductase (encoded by tomA5), a protein (encoded by tomA2) involved in electron transfer between oxidoreductase and hydroxylase, and a relatively unknown subunit (encoded by tomA0) (26,36). TOM-Green was produced by directed evolution of TOM with one amino acid change in the alpha-subunit of the hydro...