This study examines the bioremediation potential and cadmium-induced cellular response on a molecular level in Candida tropicalis 3Aer. Spectroscopic analysis clearly illustrated the involvement of yeast cell wall components in biosorption. Cadmium bioaccumulation was confirmed by TEM, SEM, and EDX examination. TEM images revealed extracellular as well as cytoplasmic and vacuolar cadmium nanoparticle formation, further validated by presence of ycf1 gene and increased biosynthesis of GSH under cadmium stress. Fourteen proteins exhibited differential expression and during cellular redox homeostasis are found to involve in nitrogen metabolism, nucleotide biosynthesis, and carbohydrate catabolism. Interestingly, C. tropicalis 3Aer is equipped with nitrile hydratase enzyme, rarely been reported in yeast. It has the potential to remove nitriles from the environment. The Cd toxicity not only caused growth stasis but also upregulated the cysteine biosynthesis, protein folding and cytoplasmic detoxification response elements. The present study suggests that C. tropicalis 3Aer is a potential candidate for bioremediating environmental pollution by Cd.