Three strains of a novel yeast species, Candida materiae sp. nov., were isolated from rotting wood in an Atlantic rain forest site in Brazil. Analysis of the sequences of the D1/D2 domains of the large-subunit rDNA showed that this species belonged to the Spathaspora clade and was related to Candida jeffriesii and Spathaspora passalidarum. Unlike C. jeffriesii and S. passalidarum, C. materiae sp. nov. did not ferment xylose. The type strain of C. materiae sp. nov. is UFMG-07-C15.1BT (=CBS 10975T=CBMAI 956T).