The effects of formaldehyde on the growth of two strains of fodder yeasts Candida diddensii 74-10 and Candida tropicalis R-70 were investigated using the method of continuous cultivation under conditions of carbon limitation and at dilution rates of 0.1/h and 0.25/h. The results indicate that formaldehyde induces a decrease in the yield of biomass, but stimulates the synthesis of protein and RNA. The authors studied the activities of the following enzymes: NADPH-linked glutamate dehydrogenase, NADH-linked glutamate dehydrogenase, alanine dehydrogenase, glutamine synthetase, and glutamate synthase, which are utilized in nitrogen metabolism. The data obtained showed an increase in the activity of the glutamate dehydrogenase pathway of ammonium assimilation. It was also established that formaldehyde caused considerable changes in the micro-organisms at the higher dilution rate.