Surface display of enzymes has been employed to improve stability of enzymes, and further save tedious purification process of enzymes to be used in conventional immobilization. Lipase is widely applied in industry. In this study, we constructed a Saccharomyces cerevisiae strain displaying lipase Lip2 from Yarrowia lipolytica on the cell surface. The gene encoding mature Lip2 was fused with the genes encoding the Kre1p leader sequence and the C-terminal domain of Cwp2 including the glycosylphosphatidylinositol(GPI)-anchor attachment signal. The Lip2 displayed on the yeast cell surface remained hydrolysis activity of lipase. The measured activity of the displayed lipase was 4.6 U/g dry cells. The displayed lipase was also characterized for its potentiality as a whole-cell biocatalyst. Its maximal activity was observed at 40°C and pH 8.0, and it exhibited good thermostability and high tolerance to organic solvent.