The production of gamma-decalactone and 4-hydroxydecanoic acid by the psychrophilic yeast R. aurantiaca was studied. The effect of both compounds on the growth of R. aurantiaca was also investigated and our results show that gamma-decalactone must be one of the limiting factors for its production. The addition of gum tragacanth to the medium at concentrations of 3 and 4 g/l seems to be an adequate strategy to enhance gamma-decalactone production and to reduce its toxicity towards the cell. The production of gamma-decalactone and 4-hydroxydecanoic acid was significantly higher in 20-l bioreactor than in 100-l bioreactor. By using 20 g/l of castor oil, 6.5 and 4.5 g/l of gamma-decalactone were extracted after acidification at pH 2.0 and distillation at 100 degrees C for 45 min in 20- and 100-l bioreactors, respectively. We propose a process at industrial scale using a psychrophilic yeast to produce naturally gamma-decalactone from castor oil which acts also as a detoxifying agent; moreover the process was improved by adding a natural gum.