A method and cell line for producing phytocannabinoids and phytocannabinoid analogues in yeast. The method applies, and the cell line includes, a yeast cell transformed with a polyketide synthase CDS and a cytosolic prenyltransferase CDS. The polyketide synthase enzyme catalyzes synthesis of olivetol or methyl-olivetol, and may include Cannabis sativa olivetolic acid synthase or Dictyostelium discoideum polyketide synthase (“DiPKS”). The yeast cell may be modified to include a phosphopantethienyl transferase for increased activity of DiPKS. The yeast cell may be modified to mitigate mitochondrial acetaldehyde catabolism for increasing malonyl-CoA available for synthesizing olivetol or methyl-olivetol. The prenyltransferase enzyme catalyzes synthesis of cannabigerol or a cannabigerol analogue, and may include an αββα cytosolic prenyltransferase enzyme from Streptomyces sp CL190. The yeast cell may be modified to mitigate depletion of geranyl pyrophosphate for increasing available geranyl pyrophosphate for prenylation.