Temperate abalone species in aquaculture have a grow-out period of approximately 3 years because of their slow and heterogeneous growth rate. Abalone aquaculture is still a developing industry, and at least two major issues, nutrition and health, impede its development. Abalone are fed macroalgae on-farm in a number of countries, including China, Korea, South Africa and Chile. Formulated diets are crucial to the success of abalone aquaculture in countries where abalone do not grow readily when fed brown macroalgae or when access to macroalgae is insufficient for culture. Typically, the growth rate of abalone fed formulated diets is higher than abalone fed live macroalgae. However, due to a long production period, diets for abalone not only need to sustain high growth rates, but also maintain optimal health. Feeding live macroalgae improves the feeding activity, health and marketability of abalone. In this review, the nutritional requirements of abalone and dietary ingredients used in formulated diets will be discussed, together with the use of dried macroalgal meal as a dietary ingredient in formulated diets to improve the feeding activity, health and marketability of abalone in commercial production.