Two experiments were conducted to investigate the effects of varying dietary protein (35-45%) and energy levels (17.34-19.44 kJ g )1 ) on the growth performance of milkfish (Chanos chanos) maintained under laboratory (experiment 1) and field conditions (Experiment 2) in inland saline groundwater. The results of experiment 1 (initial weight of fish: 0.25 g) revealed that, irrespective of the protein source (fish meal or processed full fat soybean), fish fed a diet containing 40% protein showed significantly (p < 0.05) higher growth in terms of live weight gain and specific growth rate, low feed conversion ratio [1.71 (fish meal) and 1.58 (soybean)], high nutrient retention (gross protein retention: 28.59 and 31.05%; gross energy retention: 24.23 and 26.04%), apparent protein digestibility (81.74 and 85.91%) and digestive enzyme activity (specific protease and amylase). An observation on the postprandial excretion of metabolites (N-NH 4 and o-PO 4 ) indicated significantly (p < 0.05) low levels of these metabolites in aquaria where the fish were fed 40% dietary protein irrespective of the protein source. The results of experiment 2 also indicate (initial weight of fish: 4.43 g) a significantly (p < 0.05) higher growth performance (weight gain, biomass, specific growth rate, growth day )1 and fish production) in ponds where the fish were fed 40% dietary protein. Irrespective of the experimental conditions (laboratory/field), feeding the fish higher dietary protein levels (beyond 40%) not only repressed growth performance but also affected proximate composition by lowering protein accumulation and energy assimilation. An investigation on the effects of feeds on water quality parameters revealedthat values for total alkalinity, NH 4 -N, NO 3 -N, turbidity, total dissolved solids and parameters indicative of productivity (chlorophyll a, net primary productivity and plankton population) increased significantly (p < 0.05) from treatments 1-3 (35-40% protein) and declined thereafter, in treatment 4 (42% dietary protein), indicating that water quality characteristics correlated well with fish growth. The results suggest that in order to obtain a high-yield in milkfish culture system the fish should be fed supplementary diets containing appropriate (40%) protein levels, especially when the stocking rates are high.