A distributed parameter model was developed to predict the drying behaviour of granular baker's yeast by setting up material and heat balances at the particle level, Temperature and moisture gradients were calculated for cylindrical and spherical granules. The performance of the model with two granule sizes was compared with experimental measurements. The model was initially used for non-shrinking granules but later modified to take shrinkage into account. The reduction in granule size during the course of drying was estimated and good correspondence with experimental measurements was obtained. In addition to temperature and moisture gradients, the product quality was predicted during drying and compared to experimental results. The accuracy of the model was better than the lumped parameter model.