The comprehensive review on allelopathy (Rice, 1979, 1984) has been largely responsible for the evolution of allelopathy as an independent branch of chemical/ physiological ecology. The allelopathic research during the last four decades drew attention to different facets of the interactions among the constituents of habitat, calling for an understanding of the role of allelopathy under different habitat conditions. In view of this, we have reviewed the existing information on allelopathic interactions in aquatic habitats with special reference to algal allelopathy. This review has been mainly confined, therefore, to different aspects of algal allelopathy such as allelopathic interactions in algae, algal toxins, bioassays, and implications of algal allelopathy.