Microbial surfactants are environmentally friendly products with amazing properties and spectrum of applications. It is therefore, not surprising that research has increased in recent time with the objectives of sourcing for novel surface-active compounds with dual functions in oil and pharmaceutical industries. Evaluation of hydrocarbon degrading potentials and emulsifying activities indicated that biosurfactants were produced by two newly isolated and promising yeast strains, Saccharomyces cerevisiae and Candida albicans, obtained from a polluted lagoon water. Both strains were able to grow effectively on crude oil and diesel as sole sources of carbon and energy. Growth curves on diesel were obtained to establish the relation between cell growth and biosurfactant production. The growth peak was on the 8th day while the specific growth rate ranged insignificantly (P \ 0.05) between 0.46 and 0.48 day -1 . Interestingly, biosurfactant was detected on the 2nd day when growth was almost inexistent, with maximal production obtained at stationary/death phase of growth. The partially-purified biosurfactants exhibited antimicrobial activities by completely inhibiting the growth of clinical strains of Escherichia coli and Staphylococcus aureus at all concentrations tested. Although C. albicans appeared to be a better diesel-utilizer and biosurfactant-producer (E 24 = 64.2%), the potency of its surfactant was smaller than that of S. cerevisiae. These strains represent a new class of biosurfactant producers that have potential for use in a variety of biotechnological and industrial processes particularly in the pharmaceutical industry.