Tubli Bay and shallow areas south of ‘Fasht Al-Adhom’ are known for their importance to Bahrain penaeid shrimps. The role of these shallow waters in the Bahrain penaeid shrimp life cycle was studied in Tubli Bay. Plankton, beam and otter trawl samples were collected on a biweekly basis from May 1991 to June 1992. Otter trawl sampling was extended to June 1993. Four penaeid species were found in the area. Ranked by decreasing abundance, these species are Penaeus semisulcatus De Haan 1844, Metapenaeus stebbingi Nobili 1904, M. kutchensis George, George & Rao, 1963 , and P. latisulcatus Kishinouye 1896. The presence of two egg types in the plankton collection, and mature females of both M. stebbingi and M. kutchensis indicate that both species spawned in these shallow waters. Tubli Bay is an important nursery ground for both P. semisulcatus and M. stebbingi . However, this bay does not support the entire stock of P. semisulcatus . Post-spawning return migration to shallow waters is noted for P. semisulcatus . Tubli Bay is of minor importance as a nursery ground for both P. latisulcatus and M. kutchensis . Other penaeid species found in Bahrain waters are not dependent on Tubli Bay during their life cycles. These species include, Trachypenaeus curvirostris Stimpson (1860), Metapenaeopsis stridulans Alcock (1905), and M. mogiensis Rathbun (1902).