A halotolerant yeast strain R28 that can convert D-psicose to D-talitol was isolated from soy sauce mash and identified as Candida famata. The cells grown on L-sorbose were found to have the best conversion potential. C. famata R28 converted D-psicose to D-talitol at a faster rate in the presence of various carbohydrates such as erythritol, D-sorbitol, ribitol and glycerol in the reaction mixture. At 10% substrate concentration, the conversion ratio was above 90% using washed cells when 5% D-sorbitol was added to the reaction mixture. Moreover, for production of D-talitol by a fermentation reaction with C. famata R28, the conversion ratio was about 80% at 10% substrate concentration, and more than 98% of the substrate consumed was converted to o-talitol.