Vanillyl-alcohol oxidase (VAO) is a flavoprotein containing a covalently bound FAD cofactor. The enzyme acts on a wide variety of 4-alkylphenols bearing aliphatic side-chains up to seven carbon atoms in length. Short-chain 4-alkylphenols are predominantly hydroxylated to (R)-1-(4′-hydroxyphenyl) alcohols, whereas medium-chain 4-alkylphenols are dehydrogenated to the corresponding 1-(4′-hydroxyphenyl)alkenes. In this account, we summarize our work on the structure, mechanism, and biocatalytic potential of VAO. It is shown that the efficiency of hydroxylation of 4-alkylphenols is dependent on the type of amino acid residue engineered at position 170. Furthermore, it is demonstrated that the stereospecificity of the hydroxylation. reaction can...