The influence of algal diet on survival, growth and development of hatchery reared flat oyster, Ostrea angasi, larvae was investigated in a series of uni, binary and ternary algal diet trials. Early stage larvae (140–230 μm shell length) generally grew faster than late-stage larvae (230–340 μm shell length) when fed unialgal diets. Of the 24 algal diets evaluated, larvae fed unialgal diets of Isochrysis sp. (T. Iso), Nannochloropsis oculata, Tetraselmis chuii or Pavlova lutheri; a binary diet of T. chuii+T. Iso; or ternary diets of T. chuii+T. Iso combined with P. lutheri or N. oculata had the greatest larval growth, survival, development and metamorphosis, in the respective trials. The correlation between growth rate and spat produced in late-stage larvae was stronger when fed unialgal diets (r = 0.75) than when larvae were fed either binary or ternary diets (r = 0.44 and r = 0.45 respectively). Marked differences in proportion of spat produced (24 h post metamorphosis) were evident among diets producing similar growth rates. For hatchery production of O. angasi larvae, ternary diets of T. chuii+T. Iso combined with either P. lutheri or N. oculata were the best diets to maximize larval growth rate, development and survival 24 h post metamorphosis.