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Abstract In the quest for alternative renewable energy sources, a new self-assembled hybrid configuration of cellulose-coated oil-in-water emulsion particles with yeast was formed. In this research, the addition of yeasts (S. cerevisiae) to the micro-particle emulsion revealed a novel self-assembly configuration in which the yeast cell is connected to surrounding cellulose-coated micro-particles. This hybrid configuration may enhance the simultaneous saccharification and fermentation process by substrate channeling. Glucose produced by hydrolysis of the cellulose shells coating the micro-particles, catalyzed by cellulytic enzymes attached to their coating, is directly fermented to ethanol by the yeasts to which the particles are connected. The results indicate ethanol yield of 62%, based on the cellulose content of the emulsion, achieved by the yeast/micro-particle hybrids. The functionality of this hybrid configuration is expected to serve as a micro-reactor for a cascade of biochemical reactions in a “one-pot” consolidated process transforming cellulose to valuable chemicals, such as biodiesel.