Two methanol-assimilating yeast strains were isolated from a flux of a sessile oak (Quercus petrea) in Hungary and one genetically and phenotypically very similar strain from a flux of a red oak (Quercus rubra) in Canada. The strains exhibited ascomycetous affinity but ascospore formation was not observed. On the basis of the sequence of their D1/D2 domain of the large subunit rDNA, as well as of their physiological characteristics, they represent a novel yeast species of the genus Candida. Therefore Candida floccosa sp. nov. is proposed, with NCAIM Y.01581(T) (=CBS 10307(T)=NRRL Y-27951(T)) as the type strain.