In the present study, an aerobic bacterial strains OCS-A and OCS- B were isolated from an oil contaminated soil. The strains were identified to be Citrobacter freundi and Proteus mirabilis according to morphological, physiological and biochemical characteristics. The strains were able to degrade about 90% of 100 mg/L phenol within 80 h as sole carbon and energy source. The lag phase increased with increase in phenol concentration. Determination of metabolic intermediate 2-HMS, was done which indicate meta-cleavage pathway of phenol metabolism. Hence these isolates can be effectively used for bioremediation of phenol contaminated sites.