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Microbial lipid production from oleaginous yeasts is a promising process for the sustainable development of the microbial biodiesel industry. However, the feedstock cost poses an economic problem for the production of microbial biodiesel. After lipid extraction, yeast biomass can be used as an organic source for microbial biodiesel production. In this study, volatile fatty acids (VFAs), produced via anaerobic digestion of a lipid-extracted yeast (LEY) residue, were utilized as a carbon source for the yeast Cryptococcus curvatus. The response surface methodology was used to determine the initial pH and inoculum volume for the optimal VFA production. The experimental result for VFA concentration was 4.51 g/L at an initial pH of 9 and an inoculation 25%. The optimization results from the response surface methodology showed that the maximal VFA concentration was 4.58 g/L at an initial pH of 8.40 and an inoculation of 39.49%. This study indicates that VFAs from LEY can be used as a carbon source for microbial biodiesel production, with the potential to significantly reduce feedstock costs. [ABSTRACT FROM AUTHOR]