In Indonesia, coastal villages traditionally strongly depend on artisanal fisheries. With increasing population density (and hence fishing pressure) alternative sources of income become more and more important. One possible economic activity is seaweed farming, which has been introduced in many communities in Indonesia since the 1980s. Marine (small scale) algae farming is restricted to shallow coastal waters, where it is carried out over natural ecosystems, e.g. seagrass beds. Seagrass beds themselves are important habitats for many species of fish, shrimp and crab which are the basis for traditional fisheries. Therefore, if seaweed farming causes the seagrass ecosystem to change, its economical benefits might be outbalanced by losses in the fisheries sector.The field research for a PhD study included investigations of a) the economic importance of seaweed farming, b) the influence of seaweed farming on seagrass flora, c) the economic importance of artisanal fisherys practices and implications for management, and d) the variation fish stock and gill net fishery in the seagrass bed of a small village in South Sulawesi, Indonesia. The results of these studies are discussed in context and recommendations for a sustainable use of the seagrass bed are made.