A bacterial consortium isolated from saline environment was used for in the degradation of formaldehyde under saline conditions. Formaldehyde degradation was studied with the bacterial consortium at various NaCl concentrations from 3 % to 7%. The consortium utilized formaldehyde (100-400mg/L), and degraded within 96 h. The degradation of formaldehyde was optimum at 5 % NaCl (w/v). The removal efficiency of formaldehyde could be enhanced by the addition of growth promoting substances namely yeast extract, tryptone and urea, of which yeast extract proved to be efficient. The presence of different salts (i.e. KCl, Na2SO4, K2SO4 and NaNO3) did not affect the microbial growth and biodegradation of formaldehyde. The consortium could degrade formaldehyde along with phenol as the co-substrate.