A novel enzymatic process for the production of cyclodextrins from unliquefied starch was developed. Cyclodextrins were produced in an attrition bioreactor in which simultaneous hydrolysis of starch and synthesis of cyclodextrins by cyclodextrin glycosyltransferase (CGTase) occur. The CGTase was obtained from isolated Bacillus sp. BE101, and maximum activity of the enzyme was observed at pH 6.0 and a temperature of 45 degrees C. The effect of milling media size and material on the performance of the attrition bioreactor was investigated, and operational parameters such as agitation speed, volume of milling media, ratio of enzyme to starch, and starch concentration were optimized. The production yield of cyclodextrins from unliquefied corn starch of 15% reached 35% at 24 h under optimized conditions. Energy consumption for the production of cyclodextrins in the attrition bioreactor system was estimated to be about 25% of that required for the liquefaction of starch in the conventional process.