Yeast extract is widely used in different food industries as a flavoring agent or vitamin supplement. In this study, a process was optimized for the production of yeast extract from Baker’s yeast (Saccharomyces cerevisiae). A glass vessel stirred fermenter was used for the cultivation of yeast biomass. The effect of various physical and chemical factors was evaluated on the production of yeast cells and optimum conditions for the production of maximum yeast biomass were determined. The optimum growth was obtained at 30ºC with pH 4.5 using molasses as a substrate supplemented with urea at 150rpm. Yeast cells were then separated by centrifugation and ruptured and autolysis was observed to be the most feasible method. Among various method employed to dry the yeast extract, spray dryer appeared as most efficient one. Yeast extract obtained after drying was subjected to different analyses and compared with commercial yeast extract. The produced yeast extract was applied in media preparation to grow different microorganisms including yeast, bacteria and fungi and considerable growth was observed. These results indicated that the developed process is a cost effective alternate approach for the production of yeast extract.