Yeasts play very important roles in the livelihoods of peoples and various industries. This review consolidates the research on the physiological parameters used for yeast identification. Physiological parameters include the internal and external factors affecting yeast growth. External factors are confined to environmental and nutritional conditions. Environmental or physical factors include temperature, pressure, light and radiation, physiochemical (water and pH) characteristics, oxygen levels, presence of toxic compounds, and biological interactions with other living organisms. Nutritional factors include macro- and micro-elements, growth co-factors, and other parameters (e.g., CO2 and humidity). Internal factors are specific to each yeast strain including the genus, species, species variety, isolates, genetic characteristics, age of colony, source of isolation and different yeast parts. The ecophysiological classification of yeast has great importance in various fields of biotechnology. It paves the way to introduce the most appropriate yeast strain for production of fermented foods and beverages, food additives, biofuel, efficient pharmaceutical compounds, environmentally and friendly green biofuels, biocides, probiotics, enzymes, bioremediation, plant growth regulators and the like.