The identification of a xylose reductase (XR)-encoding gene (XYL1) from the xylose-assimilating yeast Kluyveromyces lactis (Kl) is described. XYL1 was isolated as a highly expressed fusion clone from a 'lacZ translational fusion library. DNA sequence analysis revealed an open reading frame (ORF) of 987 bp capable of encoding a polypeptide of 329 amino acids (aa). The deduced aa sequence displays a 62% overall identity to that of XR from Pichia stipitis. Gene disruption studies indicate that XYL1 exists as a single copy in the yeast genome and is essential for growth on xylose. Northern blot analysis of the XYL1 transcript and measurement of the XR enzymatic activities show, in contrast to other known XR-encoding genes, a constitutive expression of Kl XYL1.