Using Pseudomonas sp. B3, identified and isolated from nature, wastewater containing phenol was treated in a continuous stirred tank reactor and its reaction characteristics were studied. Average concentrations of phenol and COD in effluents were 1.5mg/L and 124mg/L at 0.059h-1 dilution rate, respectively. At the dilution rate higher than 0.063h-1, phenol and COD increased abruptly to 19mg/L and 318mg/L. At the dilution rate higher than 0.059h-1, biomass concentration suddenly decreased and was "washed out". Biomass concentration was 150mg/L at a dilution rate of 0.067h-1. Maximum biomass production rate was 15.98mg/L$.$h at a dilution rate of 0.067h-1. When dilution rate increased above 0.059h-1, effluent phenol concentration abruptly increased and biomass production rate decreased. Maximum cell growth rate(${mu}$max) and Michaelis-Mentens kinetic constant(Ks) were 0.074h-1 and 0.424mg/L, respectively. From the above result low phenol concentration can be expected at a maximum dilution rate, but reactor becomes unstable due to phenol inhibition.