The production of extracellular xylitol from D-xylose by an efficient xylitol-producing yeast, Candida sp. L-102, was studied in shake flask cultures with different nitrogen sources in the basic salt medium. Maximum xylitol production was obtained with urea as the nitrogen source. A final concentration of 100 g/L of xylitol from 114 gn D-xylose was obtained from the yeast with an indicated yield of 87.7% (based on D-xylose consumed). The average specific xylitol production rate of 0.46 g/g.h was achieved within 65 hours of incubation using 0.3% urea.