In this study, we have evaluated the effect of palladium-iron bimetallic nanoparticles (nFe-Pd) on diphenyl ether (DE) degrading bacterial strain Sphingomonas sp. PH-07 as well as a sequential nano-bio hybrid process with nFe-Pd as catalytic reductant and PH-07 as biocatalyst for degradation of triclosan. Strain PH-07 grew well in the presence of nFe-Pd up to 0.1 g/L in minimal salts medium with DE as carbon source. In aqueous system, TCS (17.3 mu M) was completely dechlorinated within 2 h by nFe-Pd (0.1 g/L) with concomitant release of 2-phenoxyphenol (16.8 mu M) and chloride ions (46 mu M). All possible dichloro-and monochloro-2-phenoxyphenol intermediates were identified by HPLC and GC-MS analyses, and the dechlorination pathway was proposed. Addition of PH-07 cells into the reactor effectively degraded the 2-phenoxyphenol. Our results reveal that strain PH-07 survives well in the presence of nFe-Pd and nFe-Pd/PH-07 hybrid treatment could be a potential strategy for degradation of TCS. (C) 2011 Elsevier Ltd. All rights reserved.