In order to construct a strain that converts sugar mixture and resist/metabolize inhibitors in lignocellulosic dilute-acid hydrolysate, the biotechnology of inactive intergeneric fusion between Saccharomyces cerevisiae and Pachysolen tannophilis was performed. Fusant 1 was successfully obtained as a hybrid strain, which was screened out by xylose and mixed sugar (xylose and glucose) fermentation. This strain showed good abilities of ethanol production, ethanol tolerance, and resistance to the toxic inhibitors presenting in the hydrolysate. The maximum volumetric yield of ethanol and yield of xylitol in mixed sugar was 9.52 g/l and 0.44 g/g, respectively. The results indicated that the constructed strain Fusant 1 was a good producer for ethanol and xylitol from lignocellulosic dilute-acid hydrolysate.