Monoterpenes are liquid hydrocarbons that can serve as light component precursors for drop-in jet fuels. Fermentative production of monoterpene products in engineered microorganisms, such as Saccharomyces cerevisiae, has gained attention as a potential route to deliver these next-generation fuels from renewable biomass. However, end product toxicity presents a formidable problem for microbial synthesis. Due to their hydrophobicity, monoterpene inhibition has long been attributed to membrane interference but the molecular mechanism remains largely unsolved. This thesis applied tools in biochemical engineering, evolution engineering and systems and synthetic biology to: (1) gain a better understanding of the mechanism behind monoterpene inhibition and (2) detail specific strategies to overcome toxicity restraints for improved production.Contrary to the accepted mechanism of membrane deterioration, these data demonstrate that the plasma membrane is not a target for monoterpene inhibition.Hallmark molecular inhibitory effects, such as increased membrane fluidity and changes in fatty acid content, were not observed during limonene exposure. Analysis of the global transcriptional response to limonene revealed a compensatory reaction to cell wall damage through overexpression of several genes (ROM1, RLM1, PIR3, CTT1, YGP1, MLP1, PST1, CWP1) involved in the cell wall integrity signalling pathway. Further studies, including cell wall integrity staining and cell wall sensitivity assays, demonstrated that limonene can disrupt cell wall properties. These findings underscore the position that monoterpene inhibition is not at the molecular level (e.g., membrane interference effects), and that the mechanism of action must stem from the physical interaction between an insoluble monoterpene phase and the surface of a cell.The inhibitory cell-solvent contact mechanism is not yet understood, but by presenting an inert solvent to the system, toxicity can be significantly reduced. In particular, the nontoxic extractant farnesene, which is already produced in yeast for diesel markets, can be blended with monoterpene precursors to make a terpene-derived biojet fuel. This work describes a biphasic system that can not only relieve product toxicity in situ but can also consolidate recovery and downstream purification steps to produce terpene fuel blends that match Jet-A fuel properties.In addition, adaptive laboratory evolution was used to generate several limonenetolerant strains. Whole-genome resequencing revealed a number of genetic targets for engineering tolerance. The mutations were constructed in the reference strain and their fitness was evaluated. A truncated version of Tcb3p protein was proven to be responsible 2 for limonene resistance. This provides new metabolic engineering strategies for further strain improvement.Lastly, product toxicity affects key production parameters such as yield, titer and rate. Monoterpene-derived jet fuel production will not be viable unless the toxicity challenge is met. To this end, this ...