Protelan is a waste of starch and glucose factory. Rhodotorula glutinis ARC-y-54 strain which capable of oil biosynthesis on a medium containing agri-industrial wastes such as sugar cane molasses as a sole carbon source and protelan as a sole nitrogen source. The optimization for single cell oil (SCO) production was carried out and both biomass and SCO production were determined. Obtained data showed that the optimum conditions for SCO production were 48 h, 20 ^oC, 5.5, 200 rpm for incubation period, incubation temperature, initial pH and agitation speed, respectively.                 The effect of NaCl addition was also examined. Obtained data proved the possibility of using Rhodotorula glutinis ARC-y-54 for single cell oil (SCO) production using some agri-industrial by-products from economic point of view and for environmental protection as well.