During a study of newly isolated yeast strains utilizing d-xylose as sole carbon source, eight strains, isolated from decayed wood, were found to represent two novel anamorphic, ascomycetous yeast species based on sequence analysis of the 26S rDNA D1/D2 domain and internal transcribed spacer region, and phenotypic characterization. The names Candida laoshanensis sp. nov. (type strain MLRW 6-2(T)=AS 2.4030(T)=CBS 11389(T)) and Candida qingdaonensis sp. nov. (type strain MLRW 7-1(T)=AS 2.4031(T)=CBS 11390(T)) are proposed for these two novel species; the closest relatives of the two novel species are Candida pomicola and Candida marilandica, respectively.