Phenol is an acute toxic compound for nervous system, kidneys, liver, muscles and immune system; it is mutagenic and possibly carcinogenic. Candida tropicalis H was locally isolated from petroleum contaminated soil and was found to be highly effective for the removal of phenol, which was used as sole source of carbon and energy. Phenol degradation was approximately 92.72 % of an initial concentration of 2000 mg phenol l-1 in 72 hrs. Residual phenol was examined along with the growth of yeast. Candida tropicalis H tolerated phenol concentration of 2100 mg l-1 and it could be a good candidate for the bioremediation of phenol contaminants in heavily polluted sites.