The present study aimed to utilize the potato-chips waste as a cheap substitute of molasses for the production of baker's yeast thereby, reduce the cost of baker's yeast production, at the same time eliminates environmental impact of waste via open burning. Investigations proceeded to optimize the conditions for acid hydrolysis of waste, followed by studying the feasibility of producing yeast biomass from the waste hydrolysate. The results revealed that, the optimum conditions for acid hydrolysis were 5 % w/v solid to liquid ratio; 100˚C hydrolysis temperature; 4% w/v acid concentration and 25 min for reaction time. The resultant hydrolysate was detoxifiedbyoverlimingtoreduceitscontentofhydroxy methyl furfural (HMF) and then utilized as a substrate for cultivation of baker's yeast. The maximal cell biomass production was attained at cultivation conditions being: 0.4 % w/v inoculum level; 2 % w/v sugar concentration; 0.05 % w/v nitrogen source (wheat bran) and 9 hr incubation period at 30 ˚C. The chemical analysis and the activity evaluation of the obtained yeast indicated that it had a high nutritive value and was suitable for bread making