Physiological responses during growth on xylose and the xylose-degrading pathway of Candida tropicalis and Candida guilliermondii yeasts were investigated. The responses to a linearly decreasing oxygen transfer rate and a simultaneously increasing dilution rate were compared. C. guilliermondii produced acetate but no ethanol, and C. tropicalis ethanol but no acetate under oxygen limitation. Both strains produced glycerol. The D-xylose reductase of C. guilliermondii is exclusively NADPH-dependent, and acetate production regenerated NADPH. The xylose reductase of C. tropicalis has a dual dependency for both NADH and NADPH. It regenerated NAD by producing ethanol. Both strains regenerated NAD by producing glycerol. The effect of intracellular NADH accumulation to xylose uptake and metabolite production was studied by using formate as a cosubstrate. Formate feeding in C. tropicalis triggered the accumulation of glycerol, ethanol and xylitol. Consequently, the specific xylose consumption increased 28% during formate feeding, from 477 to 609 C-mmol/C-mol cell dry-weight (CDW)/h. In C. guilliermondii cultures, formate feeding resulted only in glycerol accumulation. The specific xylose consumption increased 6%, from 301 to 319 C-mmol/C-mol CDW/h, until glycerol started to accumulate.