Reduction of acetylene and 15N2 by blue-green algae and other organisms from the Lizard Island area of the Great Barrier Reef was measured. The effects of storage of the algae, the partial pressures of acetylene and oxygen, and light intensity were studied. The average ratio of acetylene to N2 reduced was 1.9. With this factor, it was calculated that 6.8 - 30.6 kg nitrogen was fixed annually per hectare of rock surface in the intertidal zone. Fixation of nitrogen by blue-green algae can contribute a substantial portion of the fixed nitrogen required for maintaining the flora and fauna of the coral reef community.