The pollution of soil and water with xenobiotics is widespread in the environment and is creating major health problems. The utilization of microorganisms to clean up xenobiotics from a polluted environment represents a potential solution to such environmental problems. Recent developments in molecular-biology-based techniques have led to rapid and accurate strategies for monitoring, discovery and identification of novel bacteria and their catabolic genes involved in the degradation of xenobiotics. Application of these techniques to bioremediation has also improved our understanding of the composition, phylogeny, and physiology of metabolically active members of the microbial community in the environment. This review provides an overview of recent developments in molecular-biology-based techniques and their application in bioremediation of xenobiotics.