To introduce the native commercial shrimp species to aquaculture industry, the Iranian Fisheries Research Organization conducted a project to investigate the possibility of reproduction and cultivation of the banana shrimp (Penaeus merguensis). The present work has been carried out from 21st March 2001 in two phase, reproduction and cultivation, in Iran Shrimp Research Center. The main objectives of this study was to find the possibility of reproduction and cultivation of banana shrimp with emphasis on its cost and benefit and to find if this species could be introduced to aquaculture industry in Iran. In this work, 42 brood stocks of banana shrimp caught in Jask waters and were transported to Bushehr. The shrimps were reproduced in aquaculture research station, and then cultivated in 0.4 ha ponds in Heleh region. Most of the broodstocks perished, due to long distance of Jask from Bushehr province, or had problem in hatching. Finally 8 of broodstock shrimps spawned. In 3 cases, the reared naplii larva suffered high mortality, but the other 5 spawner’s bread successfully. The post larvae were introduced to the shrimp ponds. The primary stocking was 360,000 larvae, introduced to each of two 4 m 3 tanks. The survival in both tanks for mysis stage was 83% but for PL stages, the survival was 5% for Tank 1 due to disease outbreak (until PL 24), and 62% for Tank 2. On 10 th June 2001 the PL 24 were stocked into the ponds but unfortunately due to adaptation problem, all of the shrimps perished. It seems that banana shrimp couldn’t to be adapted to the pond condition in Heleh region. On the basis of the results, the reproduction of the banana shrimps is achievable, but broodstocks needs to be transferred to reproduction areas as soon as possible to reduce stress on the shrimps. Our finding shows that the optimum conditions of salinity and temperature for growth of the reared banana shrimp in Heleh region is 33ppt and 30 °C, respectively
