Nanoscale zero-valent iron (NZVI) particles were encapsulated in calcium alginate capsules for application in environmental remediation. TCE degradation rates for encapsulated and bare NZVI were similar indicating no adverse effects of encapsulation on degradation kinetics. Microorganisms were separately encapsulated and used along with encapsulated NZVI and co-encapsulated in calcium alginate capsules. Batch experiments were performed to test the efficacy of the combined iron-Pseudomonas sp. (PpF1) system. The combined system removed 100% TCE over the first three hours of the experiment followed by 70% TCE removal post TCE re-dosing. Complete reduction of TCE was achieved by NZVI between 0-3 h and the second phase of treatment (3-36 h) was mostly achieved by microorganisms. Experiments conducted with co-encapsulated NZVI-D.BAV1 achieved 100% TCE removal. During the first three hours of the experiment 100% TCE removal was achieved by NZVI, and 100% removal was achieved post re-dosing where D.BAV1 accomplished the treatment.