The acetone-butanol fermentation by C.acetobutylicum has gained increasing attention for the following reasons. First the finite supply of petrochemical resources, combined with increasing concern over global environmental effects and the unstable nature of the price of petroleum has revewed interest in the development of fermentation technology that allows utilzation of biomass wastes fot the production of alcohols. Second, it serves as excellent model system for understanding the regulation and molecular biology of tightly regulated complex primary metabolism, and for applications of metabolic engineering. In this review various aspects of acetone-butanol fermentation by C.acetobutylicum including strain and fermentation characteristics, enzyme regulation, and solvent formation mechanism, and product recovery and summarized.