Lipophilic yeasts called Malassezia are naturally occurring in the skin flora of 75%–98% of healthy adults. They live in areas of the skin that are highly rich with sebaceous glands. The genus Malassezia consists of 22 species They are also the cause of some skin-related diseases, such as: Pityriasis versicolor (PV), seborrheic dermatitis(SD), atopic dermatitis(AD), dandruff and complicated systemic fungal infections, particularly in infants and kids with impaired immune system. Since Malassezia species are dimorphic fungi, their transformation from the yeast to the mould phase allows them to invade the stratum corneum and break through corneocytes, which results in pityriasis versicolor . It is a chronic condition characterized by skin pigmentation that is difficult to cure and has high chance of relapse and recurrence. Seborrheic dermatitis (SD) is a common inflammatory dermatosis that can affect children, adolescents and adults of various ethnicities and races. Since Malassezia species have similar morphological and biochemical characteristics, pityriasis versicolor cannot usually be accurately and quickly diagnosed with the phenotypic approaches currently in use. Consequently, a number of genetic typing methods have been effectively applied, resulting in the identification and classification of new Malassezia species. Molecular techniques such as DNA sequence analysis, restriction fragment length polymorphism (RFLP), random amplified polymorphic DNA (RAPD), and pulsed field gel electrophoresis (PFGE) are used in genotypic identification.This review aims for phenotypic and genotypic identification of Malassezia and Malassezia species.Also aims for antifungal susceptibility testing for Malassezia species by disc diffusion method.