The mode of uptake of sterols, which are nearly insoluble in water by an Arthrobacter species, was studied on the basis of substrate transfer via the aqueous phase (solubilization/pseudosolubilization) and through direct contact with sterol particles. Growth of the organism, on stero powder was predominantly in nonlogarithmic in character, indicating a possible limitation of substrate transfer. Soluble sterol was shown to be the preferential form of the substrate for assimilation by the organism. Evidence was obtained for increased solubilizition of beta-sitosterol and cholesterol during microbial growth on these substrates. But the rate of solubilization of beta-sitosterol (3.06 mg L(-1) h(-1)) was too inadequate to account for the observed substrate uptake rare (107 mg L(-1) h(-1)) during growth. A cholesterol solubilization rate of 44 mg L(-1) h(-1) could, however, account to an appreciable extent for the observed cholesterol uptake rate of 140 mg L(-1) h(-1) during growth. Increasing attachement of cells to sterol particles during growth was observed by microscopic examination, indicating that growth may take place over the surface of sterol particles. By using the synthetic surfactant HYOXYD AAO (alkyl aryl polyglycol ether), which prevented attachment of cells to sterol particles without affecting the metabolic integrity of the cells, it was shown that growth indeed took place predominantly on the surface of the sterol particles. Increased generation of finer particles of sterol, which provides increased substrate surface area during growth, was demonstrated. It was concluded that with beta-sitosterol, growth takes place almost entirely by attachement, whereas with cholesterol, about 30% of the growth take place on solubilized substrate and the rest through attachament.