AbstractThe sardine fishery in Bali is influenced by fishing effort and environmental conditions including temperature and chlorophyll a (chl‐a). Bali's sardine, Sardinella lemuru Bleeker, production decreased significantly during the extreme conditions that occurred in 2010 and 2016. This study assesses the impact of extreme conditions on the sardine fishery of the Bali Strait. Fisheries data were collected from two landing places: Muncar fishing port (Banyuwangi District, East Java Province) and Pengambengan fishing port (Jembrana District, Bali Province) between January 2007 and December 2017. Temperature and chl‐a data were downloaded from satellite readings. Fishing locations were observed by an onboard observer to investigate shifts in fishing grounds. A modified Cobb–Douglas regression model and profile analyses were used to estimate the impact of environmental variables on sardine production and to assess how extreme periods affect the catch composition in the Bali Strait. Seawater temperature and chl‐a concentration had significant impacts on sardine production, but temperature is likely to be less correlated with sardine production than chl‐a concentration. To adapt to extreme weather, purse seiners prefer to modify the vessel type rather than change their fishing ground.