The alpha-hydroxylation of [1-14C]phytanic acid was investigated in the postnuclear fraction of rat liver. 2. The reaction required ATP, Mg, Fe3+ and molecular oxygen. Fe3+ could be replaced by Fe2+. 3. The hydroxylase activity was optimal at pH 7.5 in phosphate buffer. 4. The activity increased with postnuclear protein (5-13 mg or protein), increased with the substrate concentration at low substrate concentration. 5. The amount of the hydroxyacid formed increased with time up to 10 min. 6. Coenzyme A (100 microM-2.5 mM) stimulated the activity. 7. The activity was further stimulated by NADP and NADPH slightly and by FAD and FMN strongly, all at 100 microM concentration. 8. While CO inhibited the reaction, phenobarbital inducible cytochrome P-450 did not appear to play a role in this reaction.