As a result of the production of ethanol from lignocellulosic material by acid hydrolysis, a large quantity of non-hydrolyzed material is obtained as a residue, mainly derived from the lignin in the wood. One possible economical use of this hydrolysis residue is as raw material for production of fuel pellets to be used in residential pellet appliances (i.e., stoves and burners). The combustion characteristics of single pellets, as well as combustion results (i.e., ash deposition, maintenance, and emission performance) in residential pellet appliances, were therefore determined for hydrolysis residue pellets and compared with corresponding results using wood pellets. The hydrolysis residue pellets had a lower slagging tendency, as well as a higher heating value and lower ash content, than the wood ( stem) pellets. During combustion in residential pellet appliances, relatively similar gaseous emission performance and characteristics were obtained for hydrolysis residue and stem wood pellets. However, the results showed a significant potential for very low emissions of fine particles during combustion of hydrolysis residue pellets because of the low content of volatile inorganic constituents. Tendencies for char-aggregate formation at low temperature (< 800 degrees C) were identified during combustion of hydrolysis residue pellets. A practical implementation of the results in this work, both regarding accessibility and emission performance, is therefore to recommend the use of continuous-feed equipment thereby preserving a high temperature during the whole operation time. Thus, the results show that pelletized hydrolysis residue from lignocellulosic ethanol production could be a very interesting material for future residential pellet appliances designed for this typical biomass fuel.