Encapsulated yeast has several advantages for ethanol production from lignocellulosic materials such as enhanced inhibitor tolerance and cell stability, higher biomass concentration inside the reactor, easier cell recovery and shortened fermentation time (Talebnia 2005). During encapsulation, cells are captured inside a spherical capsule composed of an outer semipermeable membrane and an inner liquid core. Compared to entrapment in a porous gel bead, the diffusion resistance is therefore much lower trough the capsule membrane (Talebnia 2005). Encapsulation has in several studies shown to stabilize cells and improve the tolerance for inhibitors (Talebnia 2005, Pourbafrani 2008). The main goal of the present work was to investigate if encapsulation can also improve the termotolerance characteristics of S. cerevisiae in order to produce ethanol at high temperatures. In the experiments glucose conversion and ethanol production was recorded during 24 h in encapsulated and suspended yeast at high temperatures.