The effect of lovastatin, a competing inhibitor of 3-hydroxy-3-methylglutaryl-CoA-reductase (HMG-CoA-reductase) of the fungal origin on the growth of and ergosterol biosynthesis by Rh. rubra VKPM Y 1337 was studied. It was shown that the yeast growth was inhibited by lovastatin in concentrations of 0.25 to 5.0 micrograms/ml when the inhibitor was added to the cultivation medium either with the inoculum or at later periods of the yeast cultivation. In concentrations of 2.0 to 5.0 micrograms/ml lovastatin almost completely inhibited the yeast growth. In the concentrations tested the inhibitor did not decrease the ergosterol level in the yeast cells below 40 per cent of the control. When lovastatin was added in concentrations of 1.0 to 5.0 micrograms/ml the maximum inhibition of the ergosterol biosynthesis was observed at the end of the growth log phase. Further cultivation of the yeast in the presence of the inhibitor resulted in an increase of the ergosterol biosynthesis. It is believed that the increase in the quantity of ergosterol may be due either to the HMG-CoA-reductase induction under the action of the inhibitor or to its inactivation as a result of the hydroxylation.