This study reports the effect of additions of dietary microspheres of triacylglycerol (TAG, extracted from the diatom Chaetoceros muelleri) on larval development and settlement of Mytilus sp. The first experiment showed that mussel larvae successfully ingested TAG microspheres as soon as they acquired the ability to feed from exogenous sources. In a second experiment, larvae were fed for 28days on diets consisting of 0, 1, 20, or 50% TAG microspheres (based on the cell concentration of a full algal ration) added as partial replacements for a ration of Isochrysis sp. (T-ISO). Lipid content and growth of larvae fed on a diet composed of 20% TAG were higher than those of the control groups, whereas survival was negatively affected. No growth or survival effect was detected with larvae fed on a diet composed of 1% TAG, whereas high mortality after 14days was observed for larvae fed on a diet composed of 50% TAG microspheres. In a third experiment, 22-day-old larvae were fed on rations of Isochrysis sp. supplemented with 0, 1, 10, 20, 50, and 100% TAG for 2days and allowed to settle for a 7-day period. TAG content of the larvae increased with TAG added to the diet until a saturation threshold was reached between a 20 and 50% supplementation level. Similarly, free fatty acid (FFA) content increased with TAG level in the diet and was linearly correlated with TAG content of larvae. Increased levels of FFA in larvae were attributed to digestion of TAG supplements. Settlement success and survival of larvae were not affected by diet; however, regression analysis revealed that TAG level in pre-metamorphic larvae explained 28% of survival variability among cultures.