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Both field and laboratory studies were used to investigate the effects of temperature limitation and nutrient availability on seasonal growth dynamics of Laurencia papillosa and Gracilaria coronopifolia from a nearshore coral reef in the southern tip of Taiwan during 1999–2000. L. papillosa was a summer blooming alga abundant in August–November and G. coronopifolia was abundant year round except April–May. L. papillosa blooms in the summer were attributed to its preference for high temperatures and highly sensitivity to low temperatures. A wider temperature range and a significant stimulation of growth by high N inputs can explain the appearance of G. coronopifolia year round and also its maximum growth in November–March. Levels of dissolved inorganic nitrogen (DIN) and soluble reactive phosphorus (SRP) in water column were extremely high, but the growth of these two rhodophytes still suffered nutrient limitation that the type and severity of nutrient limitation were variable over time and also between two species. The growth of L. papillosa was limited by P in the early growth stage (August–September) as indicated by decreased tissue P contents, increased C/P and N/P molar ratios and increased alkaline phosphatase activity (APA) and in the later growth stage, it was subjected to N-limitation, evidenced by decreased tissue N contents and C/P and N/P molar ratios and increased tissue P contents. The growth of G. coronopifolia was also P-limited as indicated by increased tissue N contents and concomitantly decreased tissue P contents, while marked drops in tissue P contents below the subsistence level in mid September and December 1999 reveal severe P limitation, which was supported by increased alkaline phosphatase activity. Higher critical nutrient contents and nutrient thresholds for maximum growth of G. coronopifolia suggest that G. coronopifolia faced more frequent nutrient limitation compared to L. papillosa. In conclusion, the results from these laboratory and field studies provide evidence that the seasonal abundance of L. papillosa and G. coronopifolia from southern Taiwan was determined by seasonal variations in seawater temperatures and nutrient concentrations as well as different physiological growth strategies. Seawater temperature and nutrient availability were important determinants of seasonal abundance of L. papillosa while the seasonal abundance of G. coronopifolia was influenced by nutrient availability.