Sagro aquaculture investigates, from 1993/94 the possibilities of intensive larviculture and ongrowing production of Puntazzo puntazzo in the South-West part of Cyprus. The natural spawning period of P. puntazzo in our local conditions is from the middle of October to the middle of November. Water temperature is the most important factor conditioning the maturation and spawning of P. puntazzo. The spawning is sequential and takes place when the water temperatures decreases to 23 degrees Celsius. The spawning seems to be affected irreversibly when water temperature fluctuations are important. >From our brood-stock, 800 gr of eggs spawned naturally, they hatched and the larvae were reared with the green water technique. The feeding regime was based on rotifers, nauplii, enriched metanauplii of Artemia salina and artificial feed. At the age of 60 days, the fish fry percentage of survival was oscillating between 18 and 22 per cent, and the weight, between 0.15 and 0.18 gr. The swim bladder inflation was higher than 99 per cent. At the age of 127 days the fish fry presents an average body weight of 3.8 gr. Preliminary results of P. puntazzo growth in offshore culture conditions are described and natural problems are mentioned.