With an ever-growing population, global energy demand increases, thereby contributing to the depletion of fossil resources and their limited reserves. Thereby, to lessen the environmental damage caused by fossil fuels, there has been a surge of interest in developing and producing biofuels from renewable feedstocks, such as microbial lipids. Typically, they are derived via a biochemical process using liquid hydrolysates obtained from forestry residues as a substrate. However, microbial lipid production using hydrolysates presents numerous challenges, including the need for a strain that can accumulate high lipid titers, consume five-carbon sugars (C5), and tolerate inhibitory compounds (e.g., furans, phenols, and organic acids), among others. Out of several microorganisms, Rhodosporidium toruloides, an oleaginous yeast, could be a potential alternative to produce lipids. It is known to accumulate lipids up to 70% of its dry cell weight, use different carbon sources, and tolerate several inhibitory compounds. In this sense, the current thesis explores the ability of Rhodosporidium toruloides as a bio-factory to produce microbial lipids using C5 and C6 wood hydrolysates as a culture media. Different R. toruloides strains were screened, and R. toruloides-1588 was determined to have the highest lipid accumulation of 35%. Following the culture media, carbon to nitrogen ratio, use of lipid inducers, and sugar concentration optimization, the lipid accumulation increased from 35% to 57.14%, with 95% and 80% of glucose and xylose utilization in hydrolysates, respectively. Likewise, palmitic, stearic, and oleic fatty acids were the most prominently on the produced lipids. Finally, R. toruloides-1588 demonstrates the capacity to grow, accumulate lipids, and transform furfural into furfuryl alcohol and 2-furoic acid. The strain was also assessed for its ability to tolerate inhibitory compounds, such as 5-hydroxymethyl furfural, vanillin, syringaldehyde, levulinic acid, ferulic acid, acetic acid, vanillic acid, and ...