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Nikkomycin was found to be a potent growth inhibitor of Candida albicans through competitive inhibition of chitin synthase [K_i = 0·16 μm (0·1 μg ml^–l)]. The activity of the peptide-nucleoside drug was antagonized by both peptone and defined peptides. Transported dipeptides were effective antagonists while transported oligopeptides were not. A mutant of C. albicans resistant to the effects of nikkomycin through a transport defect was unable to transport dipeptides, while oligopeptide uptake was apparently unaffected. At least two peptide permeases are operational in this organism.