The conversion of cellulose, especially waste cellulosics, into utilizable materials, especially liquid fuel, is a most valuable outcome of cellulase technology pioneered at the US Army Laboratories, Natick, Mass. A process design has been proposed by Wilke for the conversion of cellulosic materials to ethanol and single-cell protein (SCP). The estimated ethanol production cost by this process is at the moment slightly more expensive than ethanol derived from petroleum. This paper deals with a process design improvement which will lower production cost for ethanol obtained via a Wilke or similar type system. We report a process by which the cellulase-catalyzed hydrolysis of cellulose to glucose is coupled with the yeast fermentation of the glucose produced to ethanol and SCP. Both processes take place in the same fermentor thus eliminating the need for the separation of glucose and a second reactor.