Pseudomonas sp. GBS.5 is a newly isolated biosurfactant producing and carbazole degrading bacterium. In the present study, this bacterium was coated with magnetite nanoparticles, synthesized using co-precipitation method. Scanning electron microscopy (SEM) studies confirmed the coating of the bacterial surface with these nanoparticles. Degradation activity of the coated cells obtained was 1.4 ppm/min as compared to 0.32 ppm/min for free cells and could be reused for five different cycles. These results indicate that magnetite nanoparticle can be efficiently used for the immobilization of biosurfactant producing bacteria involved in the degradation of polyaromatic compounds.