The membrane bioreactor for simultaneous enzymatic cellulose hydrolysis and product separation is a vessel having a lower hydrolysis reaction chamber and an upper distilled water chamber separated by a semipermeable membrane attached to the top of the lower reaction chamber. The membrane is supported on a stainless steel mesh and sealed to the mesh by epoxy glue to prevent leakage. A peristaltic pump is connected to the reaction chamber and maintains a flow of distilled water through the membrane and the upper chamber, the effluent being collected in a beaker or other product collection vessel. The reaction chamber is agitated at a moderate rate by a magnetic stirrer, and the upper chamber is agitated more rigorously by a mechanical stirrer. A thermocouple and temperature controller and a buffer solution, respectively, maintain temperature and pH in the reaction chamber optimal for enzymatic hydrolysis of cellulose.