This work describes the lipase-mediated synthesis of α-pinene oxide at ambient temperature. The immobilized lipase from Candida antarctica (Novozyme 435) is used to generate peroxyoctanoic acid directly from octanoic acid and hydrogen peroxide. The peroxy acid formed is then applied for in situ oxidation of α-pinene. High conversion of α-pinene to α-pinene oxide (approximately 70%) was achieved when using a two-phase system of toluene and water. Various parameters affecting the conversion of α-pinene to α-pinene oxide were studied.