Two strains of a psychrophilic basidiomycetous yeast species belonging to the genus Mrakia were isolated from a melt-pool mat community, on an ice island located in Disraeli Fjord, Ellesmere Island in the Canadian Arctic. Analysis of the large subunit rDNA D1/D2 domain and internal transcribed spacer region sequences indicated that these strains represent a novel species, and the name Mrakia arctica sp. nov. is proposed. This new species could grow at sub-zero temperatures and in vitamin-free media. Moreover, lipase and cellulase enzymes of M. arctica were strongly active even at −3 °C. These results suggest an important role for M. arctica in the biogeochemical cycle of glacial ecosystems.