As a fermented product, tarhana is the dry form of yogurt-cereal mixture and represents an important part of the diets of many people in different countries including Turkey. In the present study, the effects of the addition of baker's yeast on the quality and functional properties of tarhana were investigated. Tarhana was produced under laboratory conditions (uncontrolled and controlled conditions) using two formulas. Some physico chemical, functional, and sensory properties of the samples were analysed. An increase was found in the acidity value of all samples during the fermentation period. The addition of baker's yeast affected the functional properties (water absorption capacity, foaming capacity, foaming stability, emulsifying activity) of the samples (P < 0.05). The tarhana samples produced by the addition of yeast and under controlled conditions had shorter fermentation times and better sensory properties. This research suggests that the addition of baker's yeast and the employment of controlled conditions can be recommended in the production of the commercial type of tarhana.