Three ascomycetous yeast strains were isolated from decaying green wine grapes, collected from Hyderabad city in India. Two strains, YS9 and YS21, were identified as Kodamaea ohmeri and Candida fermentati, respectively. The third strain, YS12(T), differs from Candida parapsilosis, Candida orthopsilosis and Candida metapsilosis, the nearest phylogenetic neighbours, by 1.6-1.9% with respect to the nucleotide sequence of the D1/D2 domain of the 26S rRNA gene and by 1.4-9.2% with respect to the nucleotide sequence of the internal transcribed spacer 1 (ITS1)-5.8S rRNA gene-ITS2 region. YS12(T) also differs from C. parapsilosis, C. metapsilosis and C. orthopsilosis by some phenotypic characteristics. Thus, based on the phenotypic differences and phylogenetic analysis, strain YS12(T) is assigned the status of a new species of Candida, for which the name C. hyderabadensis sp. nov. is proposed. The type strain is YS12(T) (NRRL Y-27953(T)=CBS10444(T)=IAM15334(T)).