A microorganism which degrades phenol and co-metabolizes trichloroethylene (TCE) was isolated from Yangsan stream after enrichment in a medium containing phenol as the sole carbon source. The isolate EL-43P was identified as the genus Rhodococcus by its morphological, cultural and physiological characteristics. Phenol-induced cells of Rhodococcus sp. EL-43P degraded TCE. Toluene and nutrient broth could not replace the phenol requirement. The optimal conditions of initial pH and temperature of media for growth were 7.0~9.0 and $30~50^{circ}C$, respectively. Rhodococcus sp. EL-43P could grow with phenol up to 1,000 ppm. Growth was inhibited by phenol at a concentration above 1,500 ppm. It was observed that Rhodococcus sp. EL-43P was able to degrade 90% of phenol (1,000 ppm) after 40 h in a culture. Phenol-induced cells of Rhodococcus sp. EL-43P degraded 95% of $5{mu}M$ TCE in 6 h. Rhodococcus sp. EL-43P hardly degraded TCE above $100{mu}M$.