In this study, biomass and lipid production capacity of oleaginous yeast Yarrowia lipolytica grown on wood hydrolysate was invesitgated. The demand in biofuel market prompted the third generation of bio-oil production via oleaginous species. Being noncompetitive with food resources unlike other second generation oil plants, microbial oil production provides a chance for the valorization of a variety of nutrient sources abundant in the environment such as waste and waste streams, industrial, agricultural, and forest residues. Among these resources, the potential of woody biomass as a feedstock for biotechnological species has recently increased efforts for its utilization to produce valuable microbial products due to the high content of lignocellulosic (LC) sugars for their bioconversion.