Nosocomial fungal infections remain a serious cause of morbidity and mortality. As immunodeficient populations increase, the incidence of nosocomial fungal infections continues to rise. Although a wide variety of new and emerging fungi can cause nosocomial infections, Candida species remain the major etiologic agent. Candida species vary in their epidemiology and therapy. New diagnostic, epidemiologic, and therapeutic tools have been developed and are discussed in this review. They include the use of polymerase chain reaction-based diagnostic methods, recent advances in antifungal susceptibility testing, and comparative therapeutic and prophylactic trials. As advances in prevention, diagnosis, and therapy continue, nosocomial fungal infections and the morbidity and mortality associated with them can be reduced.