Thalictrum rugosum cells were immobilized in calcium alginate, where they continued to live with their biological activity. The immobilized living cells performed the production of berberine in both shake flasks and an airlift bioreactor. Berberine formation was growth associative and most of the berberine produced was stored intracellularly. Rapid hydrolysis of sucrose and preference of glucose over fructose during the growth stage was observed. Phosphate-deficient media increased berberine production and prevented the dissolution of alginate beads. The behavior of immobilized cells grown in an airlift reactor was compared with that of the corresponding shake flask culture with respect to growth and berberine production. The rate of cell growth and berberin production in an airlift reactor operation was higher than those in packed-column reactor operation due to a better oxygen transfer.