The present work is intended to investigate biodegradation of formaldehyde by the marine microalga Nannochloropsis oculata ST-3 strain. Formaldehyde concentration in the medium decreased with the growth of the ST-3 strain. It is observed that the degradation of formaldehyde concentration depends on the increased cell number of the ST-3 strain. The ST-3 strain which was adapted to formaldehyde stepwise was able to tolerate to 19.9 ppm formaldehyde and degrade 99.3% of it in the medium for 22 days. Tolerance and degradation ability of formaldehyde by the ST-3 strain was improved by stepwise increasing of the formaldehyde concentration. Transformation of [C-13]formaldehyde in the medium with the passage of incubation was monitored by using a nuclear magnetic resonance (NMR) spectrometer. Formaldehyde was transformed into formate, and these two substances degraded in the medium with the passage of incubation as clearly shown by the NMR spectrum.