The basidiomycetous yeast genus Erythrobasidium Hamamoto, Sugiyama & Komagata, based on the type species E. hasegawianum Hamamoto et al., is characterized by filobasidiaceous basidia and the Q-10 (H2) system as its major ubiquinone. It is tentatively placed in the Filobasidiaceae. The molecular characterization is based on 18S ribosomal RNA sequence comparisons among the basidiomycetous yeasts, and the ultrastructural characterization on the cell wall and hyphal septal pores in E. hasegawianum clearly indicate a close relationship with the teliospore-forming yeasts Rhodosporidium toruloides and Leucosporidium scottii. Our molecular phylogeny with statistical analysis suggests that the existing taxonomic system of basidiomycetous yeasts, based primarily on the morphology of basidia including the teliospores (probasidia), should be revised.