The coastal hunchback locust lobster Petrarctus rugosus (H. Milne Edwards, 1837) is a very small species which can be easily domesticated and bred in captive conditions. The life expectancy of the animal is 2-3 years. It is a good candidate for marine aquaria. Captive breeding and larval rearing of this species was first achieved in CMFRI's Kovalam field laboratory (Tamil Nadu) in 2004. The larvae progress through eight planktivorous phyllosomal stages before settling into the non-feeding nisto (post-larval) stage. The phyllosoma are sensitive to high stocking densities, light, water quality and availability of feed. This paper discusses broodstock development, incubation, larval rearing and techniques for artificial propagation of the hunchback locust lobster.