Abalones are poikilotherms, and their rate of development is intrinsically linked with temperature. Understanding the effect of temperature on development is key for the successful production planning in abalone hatcheries and the reseeding of cultured abalone larvae for stock enhancement. This study investigates the effect of temperature on the development of the abalone larvae Haliotis midae. Newly hatched trochophore larvae were raised at temperatures of 14°C, 16°C, 18°C, 20°C, and 22°C until settlement. The temperature had a significant effect on the larval development—most rapid at 22°C [3 days and 65 degree-days (DD), °C day] and slowest at 14°C (6.7 days and 95 DD). Larval settlement was highest at 22°C (43.44% ± 3.73%, larvae). Larvae should preferably be seeded at temperatures between 20°C and 22°C as this will potentially increase settlement, thereby reducing larval dispersion outside of the seeding area.