Candida aquatica cells were immobilized by entrapment in alginate gel capsules and the immobilized biocatalyst was used for the production of acid-stable α-amylase. The results indicated the effects of immobilization technology on the structure, mechanical strength and α-amylase productivity of immobilized cells. The optimal process condition was showed as follows: 2.8% (w/v) sodium alginate and 0.6% Candida aquatica cells were inoculated into 4.0% (w/v) CaCl2 for 4 h immobilization. The capability of α-amylase production of these immobilized cells were 70.24 U/ml, which was 9.45 times higher than that of the freely suspended cells.