Characterization studies of calcium alginate beads with encapsulated Pseudomonas putida MTCC 1194, used for the biodegradation of phenol, were carried out to investigate the reactivity, reusability and structural strength of the solid matrix. Various techniques were employed to improve the structural stability of the immobilized solid necessary for its use in commercial reactors like packed bed flow reactor, fluidized bed and CSTR systems. Experiments were performed to establish the optimum conditions for durability, strength and steady biochemical reactivity. During a batch run of 40 h a gradual decline in the rate of phenol degradation was observed with the immobilized system. The calcium alginate beads with high structural strength yielded decreased activity. Treatment with a hardening agent like glutaraldehyde for different concentrations and treatment times led to variations in structural stability, reusability and the extent of phenol degradation. Scanning electron microscope studies of the immobilized solid indicated the internal distribution pattern of the cells encapsulated in a calcium alginate bead.