With the exception of a few areas, Lake Michigan (LM) is an oligotrophic clear water body. It is predominantly in its littoral zone where ecology-relevant processes unfold due to a variety of natural and anthropogenic forcings arising from the watershed. However, the bottom influence there is strong enough to contaminate the at-satellite signal, thus impeding the remote sensing of water quality parameters within the coastal zone.A new bio-optical retrieval algorithm, based on a forward radiation transfer model, LM specific hydro-optical model and the multivariate optimization technique is developed for operational retrieval from satellite data of water quality parameters in lakes optically shallow areas. Application of the developed operational tool to processing MODIS-Aqua data (matching up the location and timing of in situ CPA and radiometric measurements) has convincingly shown its advantage over the OC4 performance in lacustrine optically shallow waters at all sampling stations.