Despite the common assumption that most Haplosclerida are viviparous sponges, this study of the reproductive cycle of Haliclona fulva demonstrates that this species is actually oviparous and gonochoric. Intriguingly, not a single male was recorded in 15 months of sampling. Oogenesis is synchronous, starting in late April and terminating in September. Asexual reproduction is represented by cyclic budding, which occurs from late November to early March. During the season of asexual reproduction, the reproductive effort represents from 0.21% to 1.49% of the parental tissue, with the highest values being recorded in winter. During the season of sexual reproduction, the female reproductive effort ranges 0.05–1.15%, with the highest effort appearing in early summer. However, no significant correlation between reproductive efforts and seawater temperature fluctuations could be detected. We describe the ultrastructural morphogenesis of the buds for the first time in this species. This process is asynchronous, with buds of variable size being attached to the maternal apical surface via a short stalk. Young buds lack any particular anatomical organization, whereas bud maturity is characterized by the development of mesohyl and by the appearance of an increasing number and volume of lacunae in the central part of each bud. At this stage, buds harbor numerous small choanocyte chambers scattered throughout the inner region, and all cell types known from the mesohyl of parental sponges: microgranular cells, granular cells, archaeocytes, endopinacocytes and exopinacocytes, central cells, and sclerocytes.