In pharmaceutical industry, L-phenylacetylcarbinol (L-PAC) is used as an intermediate for the production of L-ephedrine hydrochloride--a well known bronchodilator. Certain yeast strains are known to transform benzaldehyde to produce L-PAC with the help of a specific enzyme pyruvate decarboxylase (PDC) and pyruvate. Simultaneously another by-product, benzyl alcohol is also produced by another enzyme alcohol dehydrogenase (ADH). Strains belonging to the genera Saccharomyces and Candida have been found to be more efficient L-PAC producers as comparison to other yeasts. The formation of L-PAC is determined by the growth and biotransformation conditions. In the presence of benzaldehyde, cell growth is adversely affected and L-PAC production is low. Harvested whole cells immobilized in different carriers have shown tolerance for higher benzaldehyde doses and increased L-PAC yield has been obtained with semicontinuous mode of benzaldehyde biotransformation. Strain improvement also has effectively enhanced the yield of L-PAC. Studies with isolated PDC enzyme have shown significant potential for improving the L-PAC yield.