Enzymatic transformation of recalcitrant and other pollutants is a promising eco-friendly alternative to physico-chemical methods in environmental remediation. This review summarizes some of the significant advances in applications of oxidative enzymes for treatment of xenobiotics. The review also discusses some of the underlying principles and enzyme reaction mechanisms in the detoxification or removal of xenobiotic compounds such as dyes, phenolic compounds, nitroaromatic compounds and polyaromatic hydrocarbons, as a way of remediating contaminated soils or wastewaters.