One-month-old Chinook salmon fry from a cold-water hatchery were presented live for euthanasia and necropsy. Gross lesions were emaciation in 90% of the fry and ascites and increased cutaneous pigmentation in the remaining 10%. A cause for the emaciation was not determined. Histologically, the fry with ascites and increased pigmentation had visceral mycosis with aerocystitis, myositis, peritonitis, and dermatitis. Sporobolomyces salmonicolor, a rare human pathogen, was isolated and identified in tissue sections from affected fry.