The optimal cell concentration and dilution rate for maximum ethanol productivity were obtained using dynamic simulation in cell recycled continuous bioreactor. The good control performance was observed using rule-based STR (self-tuning regulator) compared to conventional STR. Rule-base contained the scheme to implement the STR in an efficient on-off way and the scheme for the controlled variable to reach the optimal value in a short time. Since a mathematical model was used to analyze and estimate the changes of the state variables and the parameters, it was possible to understand the physical meaning of the system.