An in vitro assay system that used erythrocytes was developed to assess the toxicity of delta endotoxin of Bacillus thuringiensis subsp. israelensis (Bti), a mosquito larvicidal agent. This endotoxin was activated at high alkaline pH without causing alkaline injury to the erythrocytes. The assay is carried out on blood agarose plates, prepared in MOPS‐buffered saline (0·01 mol 1‐1), pH 7·0. The threshold dose for toxicity of Bti HD‐567 was 8 ng protein and that of Bti H‐14 and IPS‐82 standard were 6 ng and 4 ng protein respectively. The assay is rapid, sensitive, quantitative and applicable to different Bti formulations to assess the toxicity of the products. Only the activated toxin is detected by this method and has good correlation with insect bioassay. The percentage toxicity dose of different Bti preparations agrees well with percentages of LC50 values when the second instar larvae of Aedes aegypti were tested.