Bacillus subtilis AS1.398 was cultivated in a 11.5-L total volume external-loop airlift bioreactor with a low height-to-diameter ratio of 2.9 and a riser-to-downcomer diameter ratio of 6.6 for the production of protease from crude substrates with dregs. The influence of aeration rate, liquid volume, and sparger hole diameter on protease production was investigated. An average of 8197 u/mL protease activity was obtained after a total fermentation time of 32 h in the external-loop airlift bioreactor with a liquid volume of 8.5 L, air flow rate of 1.5 vvm, and sparger hole diameter of 1.5 mm. The addition of one stainless steel sieve plate in the riser of the airlift bioreactor increased productivity of protease. After 32 h of fermentation, an average of 8718 u/mL protease activity was achieved in the external-loop airlift bioreactor with one sieve plate and an air flow rate of 1.2 vvm, liquid volume of 8.5 L, and gas sparger hole diameter of 1.5 mm. This was 9.0% higher than the typical averages of about 8000 u/mL protease activity in the mechanically stirred tank bioreactors of the enzyme factory using the same microorganism. It is possible to make a scale-up of the external-loop airlift bioreactor and feasible to operate it for production of protease from crude substrate with dregs.