Mn(II)+succinate decreased the carotenoid formation of the yeast Phaffia rhodozyma, probably by scavenging $O_2$. When duroquinone (DQ), an internal and external $O_2$ generator, was added to medium, P. rhodozyma produced more amount of carotenoids. The increased carotenoid production was destroyed by oxygen radical (OR) scavengers, ascorbate+Cu(II) and dimethylsulfoxide. When sub-lethal concentrations of $H_2O_2$ , an external OR source, and antimycin, an internal OR inducer, were used, the effect of $H_2O_2$ on carotenoid formation and composition was less significant than that of antimycin. Addition of superoxide dismutase, an external OR remover, rescued cells from death caused by the high concentration of DO. In this condition, the yeast culture showed an increase in carotenoid content. Addition of DQ into P. rhodozyma culture in the stationary phase did not increase carotenoid production. Therefore, carotenoid formation was stimulated by internal ORs in the growing yeast. It was probably due to release of catabolite repression on carotenogenesis in the yeast. Aeration was important for carotenoid production but was not as effective as the internal OR producer, DQ.