The Brazilian flounder, Paralichthys orbignyanus, is a promising candidate for aquaculture, especially due to the euryhalinity demonstrated experimentally for large juveniles (3 g) and sub-adults. Flounder are observed in estuaries and were already reared in fresh and salt water, however little is known with respect of salinity tolerance during their early development. The objective of this work was to evaluate the effects of salinity from fertilization to juvenile settlement. Three experiments were conducted to evaluate the effects of salinity. In trial 1 adult flounder were captured in the wild, transferred to the laboratory and induced to spawn. The gametes were hand striped, split in four samples and fertilized with water at 10, 15, 25, and 35‰. Eggs were considered fertilized when the first cell divisions were observed under the microscope. For the trial 2 newly hatched larvae were reared in four salinities (5, 10, 20, and 30‰) and their growth and survival were observed until metamorphosis. In trial 3 larvae and juvenile of different ages (6, 16, 30, 45, and 60 dah — days after hatching) were evaluated for their tolerance to fresh water. Although the fertilization rate was directly proportional to salinity, hatching was successful only in full salt water. Larvae did not survive in low salinity water (5‰) longer than 6 days, whereas growth was improved when larvae were reared at 20 and 30‰. Young larvae cannot survive in salinities below 4‰, but at 30 dah juvenile presented 100% survival in fresh water. The present findings demonstrate the need for high salinity water (30–35‰) for the successful reproduction and incubation of P. orbignyanus eggs. Flounder can be reared successfully at intermediate salinities (20‰) during larviculture, but at lower salinities (5 and 10‰) their survival and growth are impaired. However, immediately after flounder metamorphose into juveniles they survive even in fresh water, demonstrating the strong euryhalinity of this species even at early stages of development.