The parameters for complete hydrolysis of L-phenyl acetyl phenylglycine (L-PAPG) using immobilized penicillin G acylase (IMEPGA) were investigated. IMEPGA exhibited maximum activity at pH 8.5 and 50 degrees C. The apparent Km value observed was 10 mM. Quantitative hydrolysis (>97%) of the L-PAPG was achieved within 45 min, at pH 7.8 and 37 degrees C, when 0.5% (w/v) of DL-PAPG was used and the concentration of IMEPGA was 133 IU/gm of DL-PAPG. The IMEPGA was used for 50 cycles.