The abundance, burrow characteristics, and in situ behaviour of the burrowing shrimps Neaxius acanthus (Decapoda: Strahlaxiidae) and Alpheus macellarius (Decapoda: Alpheidae) were studied to quantify the collection of seagrass material, to identify the fate of this collected material, and to determine the importance of these burrowing crustaceans in the nutrient (nitrogen and phosphorus) cycling of two tropical seagrass meadows on Bone Batang, South Sulawesi, Indonesia. Alpheus macellarius harvested 0.70 g dry weight (DW) burrow −1 d −1 seagrass material, dominantly by active cutting of fresh seagrass leaves. Neaxius acanthus collected 1.66 g DW burrow −1 d −1, mainly detached leaves which floated past the burrow opening. The A. macellarius and N. acanthus communities together collected in their burrows an amount of seagrass leaf material corresponding to more than 50% of the leaf production in the meadows studied. The crustacean species studied might therefore fulfil an important function in the nutrient cycling of tropical meadows. In the burrow most of the collected material is shredded into pieces. The burrows of both species had special chambers which serve as a storage for seagrass leaf material. Neaxius acanthus incorporated most of the material into the burrow wall lining, which is made of small sediment particles and macerated seagrass leaves. Phosphate concentrations measured in N. acanthus burrows compared with pore-water and water-column concentrations suggests that a substantial amount of the seagrass material undergoes decomposition in the burrows. Oxygen levels measured in these water bodies are indicative for a possible exchange of water between the burrow and its surroundings, most likely supported by the shrimps irrigating their burrows. By collecting leaf material in their burrows, nutrients that are otherwise lost from the seagrass meadow associated with detached leaves and leaf fragments carried away in the water column, are maintained in the meadow and may form an important source of recycled nutrients.