Foreign competition is having a considerable impact on the competitiveness of salmonid pen.culture ventures in the US. One means to increase the economic viability of US ventures is to rear additional species with clear.cut commercial potential. Lumpfish are a possible candidate for net.pen culture for their roe (caviar) and flesh. Lumpfish were grown in net.pens, spawned and initial attempts at larval rearing begun with a Phase I SBIR. Further research on the suitability of lumpfish for net.pen culture will be determined during the Phase II SBIR by seeking answers to the following questions: 1) Can larval lumpfish be reared with satisfactory growth and survival on artificial diets? 2) Can adults survive, grow and produce normal eggs when held in net.pens at salmon densities? 3) Are non.spawning lumpfish held year.round in net.pens, a quality foodfish?