Studies were carried out on lipase production by Candida rugosa The yeast was grown in Universal Yeast medium. Addition of olive oil to this medium induced lipase production and in 10% (v/v) concentration yielded 9.36 U/ml enzyme. Replacement of glucose with maltose further improved the lipase yield. Maximum enzyme (12.55 U/ml) was obtained when C. rugosa was cultivated in Universal Yeast medium supplemented with ur ea (0.1%), maltose (1%), olive oil (10%, v/v) and minerals and incubated on a rotary shaker (180 rpm) at 30 +/- 1 degrees C for 72 h. Copyright (C) 1996 Elsevier Science Ltd.