We designed and constructed a green and sustainable bioprocess to efficiently coproduce D‐tagatose, bioethanol, and microbial protein from whey powder. First, a one‐pot biosynthesis process involving lactose hydrolysis and D‐galactose redox reactions for D‐tagatose production was established in vitro via a three‐enzyme cascade. Second, a nicotinamide adenine dinucleotide phosphate‐dependent galactitol dehydrogenase mutant, D36A/I37R, based on the nicotinamide adenine dinucleotide‐dependent polyol dehydrogenase from Paracoccus denitrificans was created through rational design and screening. Moreover, an NADPH recycling module was created in the oxidoreductive pathway, and the tagatose yield increased by 3.35‐fold compared with that achieved through the pathway without the cofactor cycle. The reaction process was accelerated using an enzyme assembly with a glycine–serine linker, and the tagatose production rate was 9.28‐fold higher than the initial yield. Finally, Saccharomyces cerevisiae was introduced into the reaction solution, and 266.5 g of D‐tagatose, 162.6 g of bioethanol, and 215.4 g of dry yeast (including 38% protein) were obtained from 1 kg of whey powder (including 810 g lactose). This study provides a promising sustainable process for functional food (D‐tagatose) production. Moreover, this process fully utilized whey powder, demonstrating good atom economy.