Abstract: A method of producing high quantities of ethanol and a high quality pulp to produce a variety of papers. The method comprises preparing the bamboo by chipping, shredding and washing. This bamboo fiber is then processed in two stages of prehydrolysis to separate the ethanol producing portion from the pulp producing portion. The ethanol producing portion is condensed and subject to enzymatic hydrolysis and fermentation to produce an ethanol product. The pulp producing portion is processed in two stages of digestion to produce a pulp in high yield that is suitable to produce a variety of papers.