Sixty-six species of fungi were screened for their ability to hydroxylate biphenyl. Thin-layer and gas chromatographic analyses indicated that seven organisms actively hydroxylated this substrate. Of particular interest were Cunninghamella echinulufa ATCC 9244 which produced 4hydroxybiphenyl as the major metabolite, Helicosfylum piriforme QM 6945 which produced exclusively 2-hydroxybiphenyl, and Aspergillus parasiticus ATCC 155 17 which produced a good yield of 4,4'-dihydroxybiphenyl. These results were confirmed by isolation of the phenolic metabolites following preparative-scale conversions and comparisons of the isolated phenols with authentic reference materials.