Gracilaria verrucosa was successfully cultivated in a pond based aquaculture system at Narakkal. Kerala. India. Daily growth rate of seaweed was found to be maximum (19.22%) during 60 days of introduction. The growth. pigment constituents and the yield of agar were influenced by the environmental parameters. Agar yield and photosynthetic pigments declined in the initial period up to 50 days due to acclimatization of the plants lo new environment which was collected from Chennai, India and introduced in the pond at 'Narakkal. After 60 days, the algae started establishing in the bottom of the pond and an initial harvest of 230.25 kg was harvested after 90 days of culture period. Further regular harvest was made at every 10 days interval yielding 1015 kg of Gverrucosa during the culture period. The agar content ranged between 7-14.8% and bottom sample exhibited better yield of. agar than the plants cultured in the floating raft.