The fermentative characteristics in ethanol production from lactose, with increased ethanol tolerance, of a fusant yeast strain constructed by protoplast fusion of Saccharomyces cerevisiae and Kluyveromyces fragilis were studied. The ethanol tolerance of this strain was increased to 8.0%, compared with the parent K. fragilis. During batch ethanol fermentation the optimal cultivation conditions for this fusant yeast were an initial pH of 4.5, a culture temperature $30^circ{C}$. stirring at 100 rpm without aeration in 10% lactose medium (supplied with 1.0% yeast extract). Using this fusant strain in whey fermentation to ethanol, maximum ethanol production reached 3.41% (w/v) (theoretical yield; 66.7%) after a 48 hour cultivation period.