Continuous depletion of fossil fuel reserves and consequent rise in the price demands some alternative technology to meet the global requirement of energy. According to the report published in the United Nations conference on trade and development, the demand of ethanol in India was projected for the year 2016-2017 as 965.30 million litres. The main objective of the present study was ethanol fermentation from molasses using Saccharomyces cerevisiae (MTCC3090) strain for biomass substrate conversion from both free and immobilized [sodium alginate] cells were made and their ethanol yield and corresponding sugar consumption was compared. During first few batches ethanol fermentation using immobilized cells was less in comparison to fermentation using free yeast cells, but if reused the immobilized cells for subsequent batches it showed gradual increase in sugar consumption and ethanol yield. Maximum ethanol production was given by immobilized yeast as 7.6% (in 3rd batch, 96 hrs each) and 10% from free cells. This study suggests that immobilized cells can be used to carry out sequential reuse cycles.