Two-stage pretreatment conditions were optimized to convert corn fiber, separated from whole stillage in a corn dry grind ethanol plant, to fermentable sugars via hydrolysis. Liquid hot water pretreatment (25% solids) at 180 °C for 10 min, followed by three cycles of disk milling, provided maximum glucose, xylose, and arabinose yields of 88.5%, 41.0%, and 30.4% respectively after hydrolysis with Cellulase I. The glucose, xylose, and arabinose yields with Cellulase II at optimum conditions were 94.9%, 74.2%, and 66.3%, respectively. SSF of corn fiber using engineered yeast, with both Cellulase I and II, provided maximum ethanol concentrations of 2.13% and 2.73% (v/v). The protein content in the residual solid after fermentation was 47.95% and 52.05% for Cellulase I and II, respectively. This technology provides additional ethanol in a dry grind plant by converting corn fiber into ethanol and increases the protein content of DDGS, thereby improving the quality.