Resting cells of Fusarium moniliforme strain MS31 convert propylbenzene to 1-phenylpropanol with high regio- and stereospecificity. To elucidate the scope of substrate acceptability by the fungus, we used various aromatic compounds for the bioconversion. The fungus hydroxylated various alkylbenzenes at the benzylic position to produce optically active alcohols. Butylbenzene was converted to nonbenzylic alcohols. In all cases, the R absolute configuration of products was more abundant. Aromatic compounds with linear side chains and (1-methylethyl) benzene were converted to their corresponding alcohols with an enantiomeric excess of 94% to 100%. Further oxidation of the alcohols was detected, but it was weak.