Jaundice is the medical term that describes yellowing of the skin and eyes. This condition forms when there is too much bilirubin in your system. Bilirubin is a yellow pigment that is formed by the breakdown of dead red blood cells in the liver. Normally, the liver gets rid of bilirubin along with old red blood cells. Jaundice may indicate a serious problem with the function of your liver, gallbladder, or pancreas. Find an internist near you ».