We studied the ability of seven essential oils to alter the fatty acid composition of lipids produced by an oleaginous yeast Rhodosporidium toruloides. All of the essential oils, except thyme, significantly increased the stearic acid content of the lipids. The amount of essential oils in the media determined the fatty acid composition obtained. Subsequently, we studied the effect of the major monoterpenes present in these essential oils. When R. toruloides was grown on limonene, a major monoterpene in orange essential oil, the composition of lipid obtained was found to be quite similar to natural orange essential oil. This proved that limonene has a major role in the changes in fatty acid profiles of the lipids. The effect of orange essential oil on another oleaginous yeast, Cryptococcus curvatus, was also carried out. Although the effect of the essential oil on the fatty acid composition and biomass (cell mass) was similar for both these two yeasts, the reduction of the activity of some enzymes involved in the metabolic pathways was quite different. From these results, it can be concluded that the effect of essential oils differs with species and it is possible to produce lipids with alternate fatty acid profiles suitable for different applications and with good market value.