This paper presents the results of the macrobenthic algal vegetation observed in the selected littoral zones of Iligan Bay from August, 1980 to December 1982. The survey is made to provide a checklist of macrobenthic algae and to identify economically important species. A total of eighty-six species of algae are collected and identified from the Southern part of Iligan Bay. They belong to the following groups: thirty-four species Chlorophyta, thirty-five species Rhodophyta, fifteen species Phaeophyta and two species Cyanophyta. Ecological notes on algal species distribution, abundance, dominance, substrate, floral and faunal associations and selected physico-chemical parameters of sea water are also presented.