This paper presents a parallel phoneme recognition algorithm based on the continuous Hidden Markov Model (HMM). The parallel phoneme recognition algorithm distributes 3-state HMMs of context dependent phonemes to the multiprocessors, computes output probabilities in parallel, and enhances the Viterbi beam search with a message passing mechanism. The algorithm is implemented in a multi-transputer system using distributedmemory MIMD multiprocessors. Experimental results show the feasibility of the parallel phoneme recognition algorithm in constructing a real-time parallel speech recognition system based on timeconsuming continuous HMM.