Tawny puffer Takifugu flavidus is a species found in China considered to have potential for aquaculture. Experiments were conducted to determine the optimal temperature for its incubation and larval culture. Fertilized eggs collected from cultured broodstocks that were induced to ovulate with a [d-Ala6-Pro9-Net]-luteinizing hormone-releasing hormone analogue were inseminated. The effect of temperature (19, 20, 23, 26 and 29 °C) on the hatch rate, incubation period, viability of 24 h post-hatch larvae and total mortality rate was assessed. The effect of temperature (20, 23, 26 and 29 °C) on the growth and survival of larvae from 3 to 19 days after hatching (dah) was also assessed. The results showed that the optimal temperature for successful development of fertilized eggs ranged from 23 to 26 °C, and the highest hatch rate, the optimal viability of 24 h post-hatch larvae and the lowest total mortality rate were all predicted using quadratic equations. The relationship between temperature and the incubation period of tawny puffer eggs was determined using the effective degree-day model. The temperature at developmental zero (t0) was 11.34 °C, and the sum of effective degree-days (k) was 52.356. The survival rate of tawny puffer larvae at 20 °C was significantly lower than among 23, 26 and 29 °C, whereas the survival rate was not significantly different from that at 23, 26 and 29 °C. The larval growth rate increased rapidly as the temperature increased, showing a linear relationship in the range of temperatures investigated. The optimal temperature for larval culture ranged from 23 to 29 °C.