A new anamorphic heterobasidiomycetous yeast species, Kurtzmanomyces insolitus, is described using a polyphasic taxonomic approach. The new species has the salient characteristics of the genus Kurtzmanomyces and, additionally, the ability to produce ballistoconidia. Data derived from comparative micromorphological studies, physiological characterisation, ultrastructure and nucleic acid analyses led to assigning the new species to Kurtzmanomyces rather than to the currently accepted genera of ballistoconidia-forming fungi. An emendation of the genus Kurtzmanomyces is proposed to allow the inclusion of the new species.