The taxonomic status of Arthrobacter sp. Y-11T, which was described as a squalene-degrading bacterium, was investigated by chemotaxonomic and genetic methods. The strain possesses wall chemotype IV, MK-9(H2) as the predominant menaquinone, mycolic acids, and straight-chain, saturated and monounsaturated fatty acids, with considerable amounts of tuberculostearic acid. The DNA G+C content is 67.5 mol%. 16S rRNA gene sequence analysis and quantitative DNA-DNA hybridization experiments provided strong evidence that strain Y-11T represents a new species within the genus Corynebacterium, for which the name Corynebacterium terpenotabidum sp. nov. is proposed. The type strain of C. terpenotabidum is strain Y-11T (= IFO 14764T).