A cockatiel (Nymphicus hollandicus) was presented with generalized pruritis and feather loss around the head and patagial membranes of the wings. Treatment with antiparasitic and antibiotic agents did not result in clinical improvement. The lesions progressed to a generalized crusty dermatitis of the skin in the areas of feather loss. Results of skin biopsy revealed acute eosinophilic folliculitis and pyoderma containing budding yeasts. A yeast, Trichosporon asahii, was identified on fungal culture of a skin biopsy sample. Skin lesions and pruritis rapidly resolved with oral ketoconazole therapy.