The authors demonstrate here a locally integrated-bioreactor-separator for the recovery of fermentation products. The tubular bioreactor-separator contains a large number of axially located microporous hydrophobic hollow fiber membranes evenly distributed amongst immobilized biocatalyst particles. Nutrients are supplied to the biocatalyst as in an immobilized cell tubular reactor. A solvent, dibutyl phthalate, flows through the hollow fiber lumina and continuously extracts the products produced locally in the fermentor using a dispersion-free solvent extraction technique recently developed at Stevens. Carbon dioxide is also removed continuously throughout the length of the fibers ensuring greater reactor stability. Additionally the hollow fibers were used to supply oxygen throughout the reactor, while removing CO//2. Production of ethanol by yeast fermentation is considered and data presented.