Extensive and unregulated harvest of marine ornamental fishes can lead to localized depletion of target species and habitat degradation from inappropriate collecting techniques. One potential solution to these problems is the creation of marine reserves where fishing is prohibited. Marine reserves have been shown to increase fish abundance and protect ecosystems from habitat destruction associated with fishing. If protective areas are to be effective, they must include the diversity of habitats necessary to accommodate the wide range of fish species that are of interest to the marine ornamental fish trade. Fish assemblages with high diversity and abundance are often associated with habitats of high structural complexity. A relationship between fish size and reef complexity suggests the importance of shelter as a refuge for certain fishes in avoiding predation. Many species tend to aggregate to spawn in structurally complex habitats to reduce their risk of predation. Closing of spawning areas during aggregation periods has been shown to be a highly effective management strategy for these species. The limited home ranges and high degree of habitat specificity associated with many marine ornamental fishes should make marine reserves a highly effective strategy for managing these resources.