Ovigerous Hippolyte pleuracanthus (Stimpson) were collected from eelgrass beds in Bogue Sound, near Morehead City, N. C. Eggs were hatched in the laboratory and development was followed through eight zoeal stages and one postlarval stage. The zoeae were described and figured. Average temperature and salinity during rearing were 25.2°C and 33.9%; the larvae were fed nauplii of Artemia salina. H. pleuracanthus larvae differ from those of other Hippolyte species in number of stages, color and position of chromatophores, and a few points of appendage morphology. As a result of this larval study, two species which have long been confused, H. zostericola (Smith) and H. pleuracanthus (Stimpson), can be differentiated more clearly.