Phytases hydrolyze phytates to liberate soluble and thus readily utilizable inorganic phosphate. Although phytases are produced by various groups of microbes, yeasts being simple eukaryotes and mostly non-pathogenic with proven probiotic benefits can serve as ideal candidates for phytase research. The full potential of yeast phytases has not, however, been exploited. This review focuses attention on the present status of knowledge on the production, characterization, molecular characteristics, and cloning and over-expression of yeast phytases. Several potential applications of the yeast phytases in feeds and foods, and in the synthesis of lower myo-inositol phosphates are also discussed.