Fermentation characteristics of D-xylose into xylitol by Candida mogii ATCC 18364, a potential xylitol producer from rice straw hemicellulose hydrolyzates, were investigated. The influences of the most important operational variables on xylitol production were examined. The best results in xylitol production were obtained in shake-flask fermentations when 3.0 g/L initial cell concentration of 12 hr-old cells grown in D-glucose containing medium were used as inoculum. The oxygen availability is a critical factor in xylose fermentation, therefore, xylose conversion into xylitol was investigated in a 2-L fermenter at different stirring rates. Maximum xylitol production was obtained with an aeration rate of 1 vvm at a stirring rate of 200 rpm.