Since Yarrowia lipolytica, an oily yeast, contains many valuable products as biomass, to increase its widespread use, it is very important to develop a sustainable production model. In this study, the production of high acid hydrolysate from sawdust biomass, which is produced in very high amounts in our environment, and the effect of these products on the growth efficiency of Yarrowia lipolytica were investigated. A preliminary statistical analysis was carried out to assess sugar production from sawdust by hydrolysis, which estimated 85% of total sugar recovery (TSR) using 96 g of sawdust, while TSR at the highest sawdust was as high as 79%. There was a higher loss in the recovery of C5 sugars with acid and time. This study revealed that Y. lipolytica could grow with high biomass yields in varying hydrolysate concentrations, approaching yields achieved in synthetic glucose media. The maximum biomass obtained was 13 and 26 g in batch and airlift operations, respectively, using organic nutrients. Biomass and lipid yields from kinetic modeling provided a close approximation to the experimental yields performed on an airlift reactor. It was found that Y. lipolytica biomass cultivated on sawdust hydrolysates had significant lipid and protein compositions, as high as 29 and 38%, respectively.