Hydroformylation of 1-dodecene was studied in a biphasic system using water-soluble rhodium complex, RhCl(CO) (TPPTS)(2) (TPPTS: P(m-C6H4SO3Na)(3)), as catalyst in the presence of cetyl trimethyl ammonium bromide (CTAB) as surfactant to enhance the reaction rate. The reaction was carried out in a batch reactor at pressures from 0.9 to 1.3 MPa and temperatures froth 353 to 373 K. An orthogonal experimental design was adopted to study the effects of operating variables on reaction rate, selectivity and normal/isomeric aldehyde ratio. The optimal reaction conditions were derived by margin and variance analyses. The analysis of mass transfer indicates that in some cases the gas-liquid mass transfer rate is still a controlling factor. An empirical kinetic equation was developed after correcting the effect of mass transfer. Combining mechanisms of homogeneous hydroformylation with interfacial reaction of biphasic hydroformylation, a semi-empirical kinetic equation was also obtained.