This study investigated the quality characteristics of sponge cakes with addition of yam (Dioscorea) powders prepared by different drying methods, hot air (HDYP : hot air dried yam powder) and freeze drying (FDYP: freeze dried yam powder), using several physical and sensory examinations. For the foam forming ability and foam stability, the specific gravities of egg foams containing 5% yam powders were measured by drainage using funnels for 78 hrs. The results showed that HDYP and FDYP did not affect the foam forming ability but FDYP increased foam stability due to increased viscosity. When the strength of 8% gels composed of wheat starch and HDYP/FDYP was measured to predict the setting of cake structure, the strengths of starch gels containing yam powders were higher than those of control without yam powders. The volume of sponge cake containing 5% HDYP increased whereas those containing FDYP decreased at the levels of 5, 7%. From the texture profile analysis data, hardness, gumminess and chewiness of cakes containing yam powders increased. The color of cake crust and crumb became darker as the amount of yam powders increased. The results of sensory evaluation by QDA (quantitative descriptive analysis) to compare two different drying methods showed that appearance and texture of cakes containing 5% HDYP were closer to those of control than cakes containing 5% FDYP but overall acceptability of sponge cakes containing yams were comparable to the control cakes regardless of drying methods. The addition of yam powders to sponge cakes increased yam flavor and decreased egg smell. Therefore, it can be suggested that HDYP and FDYP can be added to the sponge cake formula up to 7% and 5%, respectively.