The authors have developed a continuous recycle reactor which efficiently performs emulsion type enzymatic reactions. The reactor column is filled with immobilised lipase and the reactions are effected by pumping the pre-prepared oil-water emulsion through the bottom of the reactor. A part of the product was recycled back and this type of recycling greatly improves the productivity of fatty acid compared to continuous once-through reactor without recycling. The recycle reactor could be continuously run for 35 days without decrease in conversions. The performance of the reactor was interpreted by a model and the theoretical conversion was compared with the experimental data. © 1994 Springer-Verlag.