Evaluations of the composition and biomass of photoautotrophic periphyton, nutrient concentrations of water, and concentrations of total phosphorous of benthic organic matter at eight stream sites in Middle Tennessee were used to: (1) document the composition of soft-algae and diatom assemblages, (2) assess the trophic state of the stream sites, (3) correlate trophic state to percent composition of soft-algae taxa, and (4) construct biotic indices using soft-algae taxa to help monitor trophic state. The concentration of total phosphorous of benthic organic matter was a more accurate indicator of the trophic state of the stream sites we studied relative to nutrient concentrations of water as demonstrated by correlation coefficients for nutrient concentrations to benthic concentrations of chlorophyll a, ash-free dry mass of benthic organic matter, and biotic indices which denote trophic state using diatom and soft-algae taxa. The algae trophic index developed using soft-algae taxa abundance-weighted averages of benthic concentrations of chlorophyll a correlates significantly to all of the benthic characteristics used to denote trophic state. This index is the first to utilize periphyton characteristics, as opposed to nutrient concentrations of water, to assign trophic-indicator values to soft-algae taxa in lotic systems and does not require a computer program to compute.