Luminescent Vibrio harveyi is a natural microflora of marine and coastal water bodies and is associated with mortality of larval shrimp in penaeid shrimp hatcheries. It is also known that the bacteriophages occur virtually in all places where their hosts exist. In this study, distribution of luminescent V. harveyi and the bacteriophages affecting these hosts was examined in a commercial Penaeus monodon hatchery during three shrimp larval production cycles, including a cycle affected by luminescent bacterial (LB) disease outbreak.Out of a total of 1195 samples drawn from seawater source, sand-filtered water, nauplius, zoea, mysis and post larval rearing tanks, maturation and spawning tanks, Artemia hatching tank and algal culture tanks processed using conventional microbiological techniques, 21.4% of the samples harboured luminescent bacteria. During the larval production cycle affected by LB disease (LBD), luminescent V. harveyi could be recovered from 52% of the hatchery samples, whereas during luminescent bacterial disease-free larval production cycle (LBDF), these bacteria could be recovered from only about 9% of the samples. The predominant source of luminescent bacteria was the brood shrimp and their rearing tanks in maturation and spawning facilities. 73% of the maturation and 80% of the spawning tank water samples harbored LB during LBD, whereas, only 20% and 32% of the maturation and spawning tanks respectively harbored LB during LBDF. LB could be isolated from 17% of the water samples in tanks from nauplius stage onwards with increasing counts that subsequently lead to LB disease.Bacteriophages affecting the luminescent V. harveyi could be isolated from as many as 36% (21% and 43% of the samples analysed during LBDF and LBD respectively) of a total of 181 water samples drawn from various sources in the hatchery, using 27 luminescent V. harveyi hosts by agar overlay technique. The maturation tank water samples were found to be the predominant source of bacteriophages, followed by spawning tank water samples as observed with the LB. Sixty five bacteriophages, 13 during LBDF and 52 during LBD were isolated, which were grouped in to seven types based on their plaque morphology.The study has indicated that the brooders, maturation and spawning facilities in the shrimp hatchery are the main source of luminescent V. harveyi and their bacteriophages and that occurrence of LB even in low counts during early larval stages can possibly lead to development of LB disease despite presence of bacteriophages in the larval rearing tanks.