Lao-chao is a traditional Chinese fermented rice product with a sweet and fruity flavor, containing high levels of glucose, a little alcohol and milk-clotting characteristics. In order to optimize commercial production of lao-chao, Rhizopus javanicus and Saccharomyces cerevisiae were selected as the mold and yeast starter, respectively. A commercial mixed starter (chiu-yao) was used as control. Fermentation of the experimental combination revealed a sharp drop in pH (to 4.5) on the fourth day, remaining constant thereafter. Content of reducing sugars gradually decreased throughout the entire fermentation period. Of the free amino acids, higher quantities of alanine, leucine, proline, glutamic acid, glutamine and NH3 were noted. For sugars, glucose revealed the highest concentration, while organic acid levels, including those for oxalic, lactic, citric and pyroglutamic acid, increased throughout the fermentation period. Twenty-one compounds were identified by gas chromatography from aroma concentrates of the lao-chao culture filtrate, prepared using the headspace method. For the flavor components, higher quantities of ethanol, fusel oil and ester were determined in both culture filtrates. In regard to the evaluation of yogurt-like product, there were significant differences in alcoholic smell, texture and curd firmness. (Asian-Aust. J. Anim. Sci. 2002. Vol 15, No. 4 :602-609)