The optimum values of substrate concentration, pH and temperature for higher yields of alcohol in cell immobilized bioreactor using alginate entrapped cells of yeasts for continuous fermentation of alcohol were obtained employing full factorial search. The results indicate that the yield of alcohol is predominantly influenced by the substrate concentration and temperature, both individually and in combination. The pH, on the other hand, has no significant influence. The path of steepest ascent method has been used to optimise the alcohol yield. A best alcohol yield has been obtained with 23.5% substrate concentration, 30°C temperature and at pH 5.0. © 1991 Springer-Verlag.