Several halophilic bacteria have been reported to degrade phenol. However, there are a few works about salt-tolerant fungi which can utilize phenol as sole source of carbon. In this study, a halophilic strain JS3 which could degrade phenol with high efficiency was separated and identified. The effect of initial phenol concentration on phenol biodegradation was investigated and optimal pH, temperature, as well as salt-tolerance were evaluated. The isolate could degrade less than 800mg/L phenol completely in 72h. It grew well when pH, temperature, and salinity were at values of 4.0–9.0, 30–40°C, and 0–7%, respectively. The optimal pH, temperature and salinity were 6.0, 35°C and 0%. More than 99% of 500mg/L phenol was degraded in the optimal condition within 24h. The tolerance of wide range of pH, temperature and salinity indicated that strain JS3 was effective for phenol removal in hypersaline wastewaters.