The effect of butanol, water and water-butanol on the activity of immobilized Mucor miehei (Lipozyme(TM)) was investigated at various temperatures. The immobilized form was found to exhibit better stability in comparison with the soluble form. The effect of butanol was found to be related to its concentration in the aqueous phase. The water content in the bead was found to have a significant effect on the activity of the Lipozyme(TM).