Lipomyces starkey were able to survive and proliferate in the presence of olive oil mill wastewaters (OMW), a medium difficult to process by biological treatments, due to the antimicrobial activities of their phenolic components. The microorganisms were grown in the presence of undiluted OMW, without external organic supplements, producing a significant reduction of both the total organic carbon (TOC) and the total phenols content. The OMW treated by L. starkey showed a significant increase of the germination index. The preliminary dilution of OMW enhanced the reduction of polluting components of OMW, leading to a complete TOC removal, as well as to lower levels of residual phenols. The activities of extracellular lipases and esterases significantly increased in the course of the OMW fermentation. A significant increase in lipid yield was observed in L. starkey in the course of the OMW treatment, particularly enhanced when the feedstock was preliminarily diluted. The fatty acid distribution showed a prevalence of oleic acid, demonstrating the potential of L. starkeyi as a source of lipids to be used as a feedstock for the synthesis of II generation biodiesel.