Over the last few decades, the coastal regions throughout the world have experienced incidences of algal blooms, which are harmful or otherwise toxic because of their potential threat to humans as well as marine organisms, owing to accelerated eutrophication from human activities and certain oceanic processes. Previous studies have found that correct identification of these blooms remains a great challenge with the standard bio-optical algorithms applied to satellite ocean color data in optically complex coastal waters containing high concentrations of the interfered dissolved organic and particulate inorganic materials. Here a new method called the red tide index (RI) is presented which is capable of identifying potential areas of harmful algal blooms (HABs) from SeaWiFS ocean color measurements representing the typical Case-2 water environments off the Korean and Chinese coasts. The RI method employs the water-leaving radiances ( L w), collected from in-situ radiometric measurements of three SeaWiFS bands centered at 443 nm, 510 nm and 555 nm, to achieve derivation of indices that are then related to absorbing characteristics of harmful algae (i.e., L w at 443 nm) from which a best fit with a cubic polynomial function with correlation coefficient of R 2 = 0.91 is obtained providing indices of higher ranges for HABs and lower and slightly reduced ranges for turbid and non-bloom waters. Similar indices derived from the use of remote sensing reflectance ( R rs), normalized water-leaving radiance ( nL w) and combination of both are found rather inadequate to characterize the variability of the encountered bloom. In order to quantify the HABs in terms of chlorophyll (Chl), an empirical relationship is established between the RI and in-situ Chl in surface waters from about 0.4–71 mg m − 3 , which yields a Red tide index Chlorophyll Algorithm (RCA) based on an exponential function with correlation coefficient R 2 = 0.92. The established methods were extensively tested and compared with the performances of standard Ocean Chlorophyll 4 (OC4) algorithm and Local Chlorophyll Algorithm (LCA) using SeaWiFS images collected from typical red tide waters of Korean South Sea (KSS), East China Sea (ECS), Yellow Sea (YS) and Bohai Sea (BS) during 1999–2002. The standard spectral ratio algorithms, the OC4 and LCA, yielded large errors in Chl retrievals for coastal areas, besides providing false information about the encountered HABs in KSS, ECS, YS and BS waters. On the contrary, the RI coupled with the standard spectral ratios yielded comprehensive information about various ranges of algal blooms, while RCA Chl showing a good agreement with in-situ data led to enhanced understanding of the spatial and temporal variability of the recent HAB occurrences in high scattering and absorbing waters off the Korean and Chinese coasts.