Candida lipolytica was grown continuously on n-hexadecane as the main source of carbon. A transient continuous-culture experiment was also conducted to investigate hydrocarbon-limited growth; the hydrocarbon feed flow rate was stopped for several hours and then resumed at a reduced steady-state flow rate. Interfacial tension, Sauter mean diameter, pseudosolubility, fraction of cells in the aqueous phase, oil-phase volume fraction, and cell concentration were measured to characterize the system. The microorganisms appear to utilize both the submicron drops and the microscopic drops. The effects of interfacial tension, pseudosolubility, and unoccupied interfacial area on the kinetics of hydrocarbon fermentation are discussed here. A conceptual model for hydrocarbon uptake is presented and discussed.