We derive here the equation of state for quark matter with a nontrivial vacuum structure in QCD at finite temperature and baryon density. Using thermofield dynamics, the parameters of thermal vacuum and the gluon condensate function are determined through minimisation of the thermodynamic potential, along with a self-consistent determination of the effective gluon and quark masses. The scale parameter for the gluon condensates is related to the SVZ parameter in the context of QCD sum rules at zero temperature. With inclusion of quarks in the thermal vacuum the critical temperature at which the gluon condensate vanishes decreases as compared to that containing only gluons. At zero temperature, we similarly obtain the critical baryon density for the same to be about 0.36 fm$^{-3}$.

revtex, 28 pages, 6 figures (may be sent on request) IP/BBSR/92-86