A novel aerobic denitrifying fungal strain KPL108 was isolated from the sediment of Jinpen drinking water reservoir and identified as Hanseniaspora uvarum. Strain KPL108 removed 99% of nitrate without nitrite accumulation under aerobic conditions, while the total organic carbon removal efficiency was 93%. KPL108 expressed fungal specific denitrifying gene p450nor. Nitrogen balance exhibited that approximately 92% of the initial nitrate was removed as gaseous products. Based on C-13-isotope labeling tracer, pentose phosphate pathway and tricarboxylic acid cycle were highly active in intracellular central carbon metabolism of strain KPL108. Response surface methodology revealed that the maximum total nitrogen removal efficiency occurred with the optimized parameters: C/N ratio of 6.4, pH of 8.2, 28.5 degrees C and 109.7 rpm. Collectively, the results from the present study indicate that strain KPL108 has aerobic denitrification ability, which has a great potential application for nitrogenous wastewater treatment.