Studies were made on the occurrence and standing crop of algae from eight stations. in lagoon for a period of 12 months from August (2010) to July (2011). 24 species of Chlorophyta, Rhodophyta, Phaeophyta and Cyanophyta were identified. The composition of species and the total biomass varied belong to sations. The green algae numbered more than the others in all stations. The biomass estimated for Gracilaria tenuistipitata, Gracilaria firma, Ulva flexuosa, Chaetomorpha linum varied from 50 to 600g wet/m2, 200 to 300g wet/m2, 600 to 800g wet/m2, 1200 to 1800g wet/m2, respectively. The maximum standing crop for all these four algae was observed form March to April. The agar yield of Gracilaria sp. was high and it could be exploit for the production of agar. The carbohydrate content in Chaetomorpha and Ulva was higher of 50 percent dry weigh which could be used in bioethanol production.