A detailed understanding of the mechanism of methanol oxidation in bacteria is a prerequisite for the future construction of new strains carrying this trait, or the improvement of industrial processes which employ methylotrophic bacteria. Recent advances in the isolation of mutants and the characterization of cloned genes involved in C1 metabolism have expanded the biochemical data obtained in previous years, and indirectly stimulate research on electron transport and bacterial oxidases. Due to the heterogeneity of the physiology and genetic background of methylotrophs, classical genetic techniques are not readily applicable. The adaptation of these methods requires a detailed understanding of both bacterial metabolism and the principles of the genetic techniques involved. The results obtained to date from a limited number of methylotrophic organisms, using recombinant techniques, may facilitate future research in other organisms that have proved refractory to classical genetic analysis.