Biotransformation of poorly water soluble compounds in organic media by immobilized enzyme and whole cells is illustrated in this paper taking the following examples from the author's laboratory: (1) controlled hydrolysis of triglycerides and synthesis reactions by a recombinant lipolytic enzyme (cutinase); (2) enzymatic synthesis of dipeptides; (3) continuous production of isovaleraldehyde by Gluconobacter oxydans in isooctane; and (4) sitosterol side chain cleavage by Mycobacterium sp. The role of water and organic solvent are evaluated, namely the increase in the volumetric productivity of the reaction system and the shift of the reaction equilibrium in favour of product synthesis. High product yields have been obtained due to the reduction of substrate/product inhibition. Biocatalyst stability in the presence of the organic phase was also performed.