Analysis of 20 samples of marine mud and water around Mumbai resulted in the isolation of 17 bacteria and yeasts all of which were able to degrade more than 10% of the supplied crude oil. The yeasts strains were important degraders of the aliphatic fraction of crude. All the isolated yeasts belonged to the genus Candida. Using biochemical tests these were identified as Candida parapsilosis, C. albicans, C. guilliermondii, Yarrowia lipolytica, C. tropicalis and C. intermedia. Y. lipolytica was the best degrader utilizing 78% of the aliphatic fraction of Bombay High crude oil. None of these isolates degraded the aromatic or ashphaltene fractions. All the isolates required aeration, nitrogen and phosphate supplementation for optimal degradation. Four out of the six yeasts are human pathogens.