A novel bacterial strain, PM2, capable of growing on methanol, was isolated in alkaline conditions from a soil inoculum. This bacterium was characterized at the physiological, biochemical and molecular level. Based on biochemical and molecular data strain PM2 was classified as a novel member of the group of fluorescent pseudomonads. Evidence for the presence of a pyrroloquinoline quinone (PQQ)-linked alcohol dehydrogenase in this organism is presented. Strain PM2 is, to our knowledge, the first example of a methylotrophic Pseudomonas to be characterized in detail. This novel type of metabolism in Pseudomonas broadens even further the metabolic versatility for which this genus is renowned.