When Mycobacterium aurum MO1 was grown with morpholine, the release of ammonia into the supernatant was proportional to the disappearance of morpholine, showing that this compound was mineralized. MO1 was able to grow in high concentrations of morpholine but accumulation of ammonia inhibited growth and degradation of morpholine. Immobilization of bacterial cells in carrageenan gel beads showed that morpholine degradation in these conditions began earlier and was faster than in free culture. One of the two branches of the lower pathway of morpholine biodegradation was induced while the other branch was inhibited in the presence of morpholine. Strain MO1 grew on heterocyclic compounds similar to morpholine, demonstrating that MO1 is able to degrade heterocyclic compounds containing nitrogen atoms (piperidine and pyrrolidine). Compounds containing sulphur or oxygen atoms or compounds with double bonds were not degraded.