The rapid growth and development of industrial sectors releases massive amounts of phenolic contaminants into the aquatic environment. Bioremediation is a long‐term and cost‐effective way of removing phenolic contaminants from the environment. The success of bioremediation depends heavily on the biomass growth, enzymatic activities of microbial communities, their interactions, and other cellular metabolic activities related to phenolic degradation. Thus, the current review paper focuses on evaluating the microbial remediation of phenolic contaminants as well as the many challenges that come with it, with special reference to: (i) uses, occurrence of phenolic pollutants, and contamination levels; (ii) factors affecting phenolic biodegradation and biomass growth, such as the effect of temperature, pH, agitation speed, carbon sources, inoculum size, and age. The nutritional requirements for improved microbial growth and biodegradation of phenolic from contaminated environments were also highlighted, with a particular emphasis on the role of culture medium components and various redox mediators in phenolic compound removal. The efficiency of phenolic biodegradation has also been compared with a number of previously described advanced oxidation processes.