The investigation was carried out to examine the potential of triacylglycerol (TAG) accumulation by novel oleaginous yeast isolate Cryptococcus psychrotolerans IITRFD on utilizing groundnut shell acid hydrolysate (GSH) as cost-effective medium. The maximum biomass productivity and lipid productivity of 0.095 +/- 0.008 g/L/h and 0.044 +/- 0.005 g/L/h, respectively with lipid content 46% was recorded on GSH. Fatty acid methyl ester (FAME) profile obtained by GC-MS analysis revealed oleic acid (37.8%), palmitic (29.4%) and linoleic (32.8%) as major fatty acids representing balance between oxidative stability (OS) and cold flow filter properties (CFFP) for improved biodiesel quality. The biodiesel property calculated were correlated well with the fuel standards limits of ASTM D6751, EN 14214 and IS 15607. The present findings raise the possibility of using agricultural waste groundnut shell as a substrate for production of biodiesel by novel oleaginous yeast isolate C. psychrotolerans IITRFD. (C) 2017 Elsevier Ltd. All rights reserved.