A fermenting isolate TAYI 4-2 and brewer yeast were utilized for alcoholic fermentation usingrnsugarcane molasses. The fermentation of molasses was optimized with respect to temperature, pHrnand sugar concentration. Results revealed a pH 4.5 and 11% sugar concentration as optimum forrnfermentation for both microorganisms studied. The optimum temperature for TAYI 4-2 was 350Crnwhile for brewer yeast 30 0C. Under optimized conditions, TAYI 4-2 and brewer yeast producern50.50 and 48.76 g/l of ethanol, respectively. The time required to produce a maximum alcohol byrnTAYI4-2 was around 54h and productivity was limited to 1.04 g/l/h. In order to improve thernproductivity, the immobilization of TAYI 4-2 was simply performed by the enriched cellsrncultured media harvested at exponential growth phase. Immobilization of yeast cells was carriedrnout by entrapment in 2% calcium alginate and tested for ethanol production. In a batch culture ofrnimmobilized cells, the ethanol productivity was improved to 2.12 g/l/h. To further optimizernproductivity, the immobilized TAYI 4-2 was loaded continuous immobilized cell reactor (ICR).rnThe performance of continuous fermentation system using immobilized TAYI 4-2 in ICR wasrnevaluated in terms of ethanol productivity and fermentation efficiency with varying sugarrnconcentration in the medium, at different initial pH and dilution rate. Ethanol productivity wasrnhigher at 11% initial sugar concentration similar to batch fermentation but the productivity wasrnimproved to 14.34 g/l/h. High ethanol productivity was achieved with a medium containing 11%(rnw/v ) total sugar concentration at a dilution rate of 0.15 h.1. And it was found that an increase inrndilution rate from 0.15 h.1 to 0.25 h.1 resulted in lowering ethanol concentration in the fermentedrnbroth. The dilution rate increased the amount of sugar un-utilized found to increase. The highrnspeed through the continuous system which cause a short residence time in the fermenter whichrnmay leads sugars in the medium to pass un-fermented and cause declining in fermentationrnefficiency. On the basis of the results obtained ,the potential yeast isolate TAYI 4-2 screenedrnfrom .tella. showed the highest fermentation efficiency and productivity when immobilized inrncontinuous system of fermentation within short period of time. This clearly indicates potentialrnethnologic microbe from .tella. was highly effective when it is immobilised and run inrncontinuous system of fermentation at its optimum physico-chemical conditions.