The use of a membrane bioreactor with cell retention to achieve high biomass concentrations has been examined for phenol degradation by the bacteria Alcaligenes eutrophus. This process is particularly interesting for toxic substrates as the hydraulic dilution rate and the growth rate are independently controlled. In the case of a transitory excess of phenol, this potentially toxic situation can be overcome by modifying the substrate concentration or the dilution rate without any loss of cells. The injection of a gas phase at the filter inlet increased both the permeate flow rate (by a factor of 1.75) and the oxygen transfer capacity (by a factor of 1.5). This has enabled the cell concentration to reach a maximal value of 60 g L-1 with a hydraulic dilution rate of 0.5 h(-1) and a phenol feed concentration of 8 g L-1. The volumetric productivity of this process corresponds to a phenol degradation rate approaching 100 kg m(-3) day(-1) The on-line measurement of the characteristic yellow color of 2-hydroxymuconate semialdehyde, a metabolic intermediate of the phenol degradation pathway, in the permeate provides an interesting basis for process control of phenol supply into the reactor since the color intensity correlates directly to the specific rate of phenol degradation.