Multicellular spheroids are spherical cell-aggregates that retain tridimensional architecture and tissue-specific functions. For use of multicellular spheroids of hepatocytes in a bioreactor for hybrid artificial liver support, we studied the effect of encapsulation and circulating culture on their integrity and tissue-specific functions. Multicellular spheroids of rat hepatocytes were encapsulated into microdroplets of calcium alginate gel and were used as a bioreactor in medium circulating in a spouted bed chamber. Approximately 10% of the hepatocytes of an adult rat were entrapped in a bioreactor chamber, connected to a gas exchanger and a medium reservoir. The total bed volume of the system was 250 ml. The pH and DO2 of the hormonally defined circulating medium was maintained constantly. Albumin and urea were produced in a linear fashion for 64 h at the rates of 0.02 micrograms/microgram cell protein/day and 0.15-0.2 ng/micrograms cell protein/day, respectively. Viability and structural stability of the spheroids were well preserved after the culture period. These results indicate that these encapsulated multicellular hepatocyte spheroids will provide a useful bioreactor for the continuous production of albumin, in vitro and also a prototype hybrid artificial liver support.