Barley straw was used to demonstrate an integrated process for production of fuel ethanol and astaxanthin as a value-added co-product. Barley straw was pretreated by soaking in aqueous ammonia using the previously determined optimum conditions, which included 77.6 °C treatment temperature, 12.1 h treatment time, 15 wt% ammonia concentration, and 1:8 solid-to-liquid ratio. In the newly developed process, the pretreated barley straw was first hydrolyzed with ACCELLERASE® XY (a commercial hemicellulase product) to generate a xylose-rich solution, which contained 3.8 g/l glucose, 22.9 g/l xylose, and 2.4 g/l arabinose, with 96 % of the original glucan being left intact. The xylose-rich solution was used for production of astaxanthin by the yeast Phaffia rhodozyma without further treatment. The resulting cellulose-enriched solid residue was used for ethanol production in a fed-batch simultaneous saccharification and fermentation using ACCELLERASE® 1500 (a commercial cellulase product) and the industrial yeast Saccharomyces cerevisiae. At the end of the fermentation, 70 g/l ethanol was obtained, which was equivalent to 63 % theoretical yield based on the glucan content of the solid substrate.