Most species are known in their yeast states which produce orange to red colonies when grown on Sabouraud's dextrose agar (SDA).

The colour is the result of carotenoid pigments that the yeast creates to block out certain wavelengths of light (620–750 nm) that would otherwise be damaging to the cell.

Hyphal states, formerly placed in the genus Rhodosporidium, give rise to teliospores from which laterally septate basidia emerge, producing sessile basidiospores.

The genus Rhodotorula was first created in 1927 by Canadian microbiologist Francis C. Harrison to accommodate red-pigmented yeasts (Ancient Greek ῥόδον (rhodon) means rose-coloured).

Molecular research, based on cladistic analysis of DNA sequences, has, however, shown that Rhodotorula sensu lato is polyphyletic (a mix of unrelated species).

Consequently the majority of species formerly placed in Rhodotorula have been transferred to genera in other orders including the Agaricostilbales, Cystobasidiales, Cystofilobasidiales, Filobasidiales, Kriegeriales, Microstromatales, Tremellales, Trichosporonales, and Ustilaginales.

[1] In 1967 Japanese mycologist Isao Banno introduced the genus Rhodosporidium for the sexual state of Rhodotorula, producing hyphae and basidiospores.