In this study, a novel halotolerant phenol-degrading yeast strain, SDP-1, was isolated from a coastal soil in Jiangsu, China, and identified as Candida tropicalis by morphology and rRNA internal transcribed space region sequence analysis. Strain SDP-1 can efficiently remove phenol at wide ranges of pH (3.0–9.0), temperature (20–40 °C), and NaCl (0–5%, w/v), as well as the tolerance of Mn²⁺, Zn²⁺ and Cr³⁺ in aquatic phase. It also utilized multiple phenol derivatives and aromatic hydrocarbons as sole carbon source and energy for growth. Free cells of SDP-1 were able to degrade the maximum phenol concentration of 1800 mg/L within 56 h under the optimum culture conditions of 10% inoculum volume, pH 8.0, 35 °C and 200 rpm agitation speed. Meanwhile, SDP-1 was immobilized on sodium alginate, and the capability of efficiently phenol degradation of free cells and immobilized SDP-1 were evaluated. Shortened degradation time and long-term utilization and recycling for immobilized SDP-1 was achieved compared to free cells. The 1200 mg/L of phenol under 5% NaCl stress could be completely degraded within 40 h by immobilized cells. In actual industrial coking wastewater, immobilized cells were able to completely remove 383 mg/L phenol within 20 h, and the corresponding chemical oxygen demand (COD) value was decreased by 50.38%. Besides, in phenol-contained salinity soil (3% NaCl), 100% of phenol (500 and 1000 mg/kg) removal efficiency was achieved by immobilized SDP-1 within 12 and 26 days, respectively. Our study suggested that versatile yeast Candida tropicalis SDP-1 could be potentially used for enhanced treatment of phenol-contaminated wastewater and soil under hypersaline or no-salt environmental conditions.