Kluyveromyces fragilis 2C1 was selected on the basis of maximum dough raising capacity (121 %) and biomass production of 9.36 g.d.w./l (in shake flask fermentation) among the 5 strains of lactose fermenting yeasts studied. K. fragilis 2Cl yielded 16.18 g.d.w./l biomass and 9x10(8) cfu/ml of viable counts under optimum conditions of fermentation. Fermentative activity of compressed form of this non-conventional baker's yeast (NCBY) K. fragilis 2Cl grown on paneer whey permeate medium was at par with the conventional baker's yeast (CBY) Sachharomyces cerevisiae. Vacuum dried and freeze-dried forms of experimental yeasts were not able to raise the dough. Storage stability of compressed form of NCBY was 3-4 weeks at 7 degrees C and 1 week at 30 degrees C.