The pesticide methyl parathion (MP) is widely distributed in the environment and is chemically similar to nerve agents used in chemical warfare. Detoxification of this class of compounds is a critical environmental concern. Toxicity of MP is primarily associated with the inhibition of cholinesterase activity and resulting effects on the nervous system. Methyl parathion can also induce a genotoxic effect in bacterial and mammalian cells. However, the major metabolite of MP degradation, p‐nitrophenol (PNP), is generally considered less toxic. This study reports on the evaluation of the genotoxic effect of MP, PNP, and a 1:1 MP:PNP mixture, and the utility of an organophosphorus hydrolase (OPH) enzyme for degradation of MP. Although MP induced a positive genotoxic response in Salmonella typhimurium TA100 at a dose of 1,000 μg per plate, PNP and a 1:1 mixture of PNP and MP did not induce a positive response. Methyl parathion dissolved in Luria‐Bertani broth containing 5% methanol was treated with genetically engineered intact Escherichia coli cells expressing OPH activity. Significant rates of MP biodegradation were observed in the liquid culture. Within 55 h, an average 95.5% of the MP was converted to PNP as measured spectrophotometrically. The genotoxic potential of extracts of OPH‐treated and untreated MP‐amended media was measured with S. typhimurium strain TA100. The untreated media induced a dose‐dependent genotoxic response at a dose equivalent to 54 ml of medium (MP 0.025 mg/ml) per plate, whereas the OPH‐treated media failed to induce a genotoxic response. Chemical analysis indicated that about 90% of MP was removed from the media by treatment with OPH enzyme. These studies indicate that the OPH enzyme is capable of degrading MP and eliminating its genotoxic potential in liquid culture.