The survival and growth ofChanda (= Ambassis) gymnocephalus (Lac.) fry (8·8 ± 0·2mm) collected from Murukumpuzha Lake (9·34‰) for a ninety day period in different salinity grades were studied. A faster rate of growth is exhibited by the fish in the highest salinity grades (22·41 and 28·51‰), even though during the first month, growth and health was apparently better in the lower salinity grades (4·11, 10·21 and 16·31‰). Assimilation efficiency also showed a similar gross picture. Thus inC. gymnocephalus, an euryhaline species, the fry show preferred salinity gradients for optimum growth within the fluctuating salinity regime at a stable temperature (26 ± 2° C) and hence may make salinity bound emigrations with growth.