Intensive aquaculture releases large amount of nutrients into aquatic ecosystems and can lead to eutrophication of coastal waters. Studies conducted in aquaculture systems have demonstrated that the seaweeds are efficient in reducing nutrients and at the same time provides extra income, when species of economic importance are used. This study was conducted to evaluate whether Gracilaria birdiae could be cultivated efficiently for the production of useful algal biomass and removal of nutrients from shrimp pond effluents. The results obtained showed a gradual increase in biomass and relative growth rate (RGR) over the experimental period. Mean RGR between the weeks varied significantly (p < 0.01), reaching a maximum of 3.6 +/- 0.35% d(-1) and a minimum of 1.6 +/- 0.52% d(-1). The mean for the whole period was 2.6% d(-1). The biofiltration capacity of G. birdiae was confirmed by the significantly reduced concentration of the three nutrients analyzed (PO43-, NH4+ and NO3-) over the study period. The concentration of PO43- decreased by 93.5%, NH4+ by 34% and NO3- by 100% after the 4-week experimental period. The results obtained in this study indicated that G. birdiae can be used in aquaculture systems as a biofilter. In addition, the macroalgae biomass produced offers alternative source of raw material for the extraction of the phycocolloid agar, human food and animal feed. (C) 2008 Elsevier Ltd. All rights reserved.