Abstract: A method is provided for immobilization of whole microbial cells containing enzymes in Ca-alginate capsules. Whole microbial cells are mixed with a CaCl.sub.2 solution, a small amount of xanthan gum is added, the resultant mixture is added drop-wise while stirring to a Na-alginate solution containing a small amount of surfactant which is preferably polyoxyethylenesorbitan monolaurate to obtain the capsules containing the cells. The capsules may be washed with distilled water, hardened by in a CaCl.sub.2 solution and incubated in a growth medium. The microbial cells are bacteria or fungi cells and may be recombinant cells.