The free‐living soil nematode Panagrellus redivivus is well known to be an excellent food source for first feeding fish larvae. It represents an alternative to the highly expensive Artemia, which is commonly used. The lack of a proper method for mass production of P. redivivus has prevented its wider use in commercial hatcheries. A new cultivation method allows the production of a sufficient quantity of nematodes to deliver a standardized and permanently available live food of high quality, throughout the larval rearing period. In two experiments – carried out at the Centro de Investigación en Alimentación y Desarrollo, Mexico – several feeding regimes were established to prove the quality of the mass produced P. redivivus for larvae of Litopenaeus vannamei, the Pacific white shrimp. Two different nematode treatments were compared with a no‐feed group and a control group that was fed with Artemia. All treatments had an additional algal co‐feed and were run in five replicates. Panagrellus redivivus was cultured on two different media (wheat/corn flour and oat flour) to compare these for their suitability as high‐quality live food for the larvae. Shrimp fed nematodes grown on wheat/corn medium reached the postlarval stage earlier than those from other treatments. The nematode treatments showed promising results; however, further research is needed on the development of improved culture media or enrichment methods to further increase the nutritional value of P. redivivus.