Phytoplankton structure and patterns are key components to forecast the net result of the gain and loss process that outline the resilience of the lagoon ecosystem. In order to understand the phytoplankton community structure and its relationship with the environmental variables in the shallow hypersaline Pulicat lagoon, east coast of India, observations were carried out during August 2018-January 2019 covering the three seasons: premonsoon (PrM), monsoon (M), and postmonsoon (PoM). The salinity of the lagoon varied with a minimum of 12.1 for the M and a maximum of 81.65 during the PoM. The clustering analysis performed on the phytoplankton abundance data separated the lagoon into three sectors: north sector (NS), central sector (CS), and south sector (SS). A total of 59 taxa/morphotypes from four taxonomic classes (Bacillariophyceae, Chlorophyceae, Cyanophyceae, and Dinophyceae) were recorded during the study period. The class Bacillariophyceae was dominant in the lagoon both spatially and temporally by 44.06% with Chaetoceros borealis as dominant species. Presence of characteristic species like Dunaliella sp. was observed in the higher salinity, whereas Pediastrum duplex and Scenedesmus sp. were dominant in the freshwater influx areas. The individual-based functional approach allowed grouping these taxa into 11 functional entities based on the derived 4 functional trait values (cell size, trophic regime, mobility, and coloniality). Formation of algal blooms of Protoperidinium sp. (3.3×105ind L-1) and Odentella sp. (2.8×105ind L-1) was observed in the SS during PoM as a result of reduced water exchange in the lagoon. During the same period, toxin-producing strains like Anabaena sp. and Nostoc sp. of Cyanophyceae were also recorded. Correlating the three sectors of the lake (NS, CS, and SS), it is observed that the physical, chemical, and biological properties of the lake varied continuously depending on the season and freshwater availability. Seasonal nutrient stoichiometry played a significant role in regulating the community structure and distribution pattern of phytoplankton communities of the lagoon.