Efforts were made to optimize various parameters for production of carotenoids from Rhodotorula isolated from spoiled sauerkraut using apple pomace based media. Among various media tried (with varying concentration of peptone, yeast extract and dextrose), a medium having 40 g/L of apple pomace gave the highest production of carotenoids. Ferrous ammonium sulphate at a concentration of 0.5% and 0.2% showed higher carotenoids production when used with apple pomace (10, 20, 30 and 40 g/L) and 60 g/L, respectively. Among all the combinations tried, the highest carotenoid production (46.42 mg/100g) was observed in the medium supplemented with 0.5% ferrous ammonium sulphate and 40 g/L apple pomace. Whereas, urea at concentrations of 0.1% and 0.4% showed higher carotenoids production when used with apple pomace (10, 20, 40 and 60 g/L) and 30 g/L, respectively. Among all the combinations of urea and apple pomace, the highest carotenoid production (31.37 mg/100g) took place in the medium supplemented with 0.1% urea and 20 g/L apple pomace. Out of ferrous ammonium sulphate and urea, the former proved to be better than later. Use of pestle and mortar with glass beads proved an efficient method for the disruption of Rhodotorula cells to extract pigment. Out of various solvents used (acetone, petroleum ether, hexane and ethanol), petroleum ether was the best for the extraction of pigment. The pigment, a carotenoid (with two components) extracted from Rhodotorula showed 5% antioxidant activity.