Dry mill ethanol processes produce ethanol and animal feed from whole grains,where the wastewater after the distillation and separation of solid materials is called“thin stillage.” In this work, similar production of ethanol (3.5 g/L) and biomass(5 g/L) from thin stillage was obtained during batch cultivation of the edible fungusNeurospora intermedia in a 2-m high airlift reactor and bubble column. The fungalbiomass, containing 50% w/w protein and 12% w/w lipids, was rich in essentialamino acids and omega-3 and -6 fatty acids. In a continuousmode of fermentation,dilution rates of up to 0.2 h−1 could be applied without cell washout in the bubblecolumn at 0.5 vvm. At 0.1 h−1, around 5 g/L of ethanol and 4 g/L of biomasscontaining ca. 50% w/w protein were produced. The fungus was able to assimilatesaccharides in the liquid fraction as well as sugar backbones such as xylan andarabinan in the solid fraction. The inclusion of the current process could potentiallylead to the production of 11 000 m3 of ethanol (5.5% improvement vs. normalindustrial process) and around 6300 tons of high-quality biomass for animal feed ata typical facility producing 200 000 m3 ethanol per year.