Introduction: The introduction of newer immunosuppressive agents has led to a shift in the spectrum of infections occurring after kidney transplantation. This may be due to blunted inflammatory response in such patients and a timely diagnosis and institution of therapy is essential in such cases. Among fungal agents, Candida is the most commonly isolated species. A new teleomorphic species of Candida, Stephanoascus ciferrii has been associated with systemic mycosis in immunocompromised hosts. This species is particulary resistant to fluconazole. Here we report a case of fluconazole sensitive Stephanoascus ciferrii isolated from BAL Fluid in a kidney transplant patient. Materials and Methods: BAL Fluid was inoculated on Blood and MacConkey agar plates and for fungus isolation on Saboraud’s Agar. After 24 hrs of incubation at 370C, Blood and MacConkey agar plates showed growth. Growth was also observed on Saboraud’s Agar. Gram’s staining of growth from MacConkey Agar showed growth of gram negative bacilli and from Saboraud’s Agar showed growth of budding yeast forms suggestive of Candida species . For identification and susceptibility of these organisms Gram negative panel and YST panel was selected and performed on Vitek II (Biomerieux ). Results: The bacteria were identified as Klebsiella Pneumoniae and yeast was identified as Stephanoascus Ciferrii. Conclusion: Candida ciferrii or Stephanoascus ciferrii as it is known is a new strain of Candida, which has rarely been associated with human infection. However it can cause opportunistic infection in immuno compromised patients and a high index of suspicion is required for a correct diagnosis to be made.