Sishili Bay is the most important aquiculture and tourism area for the city of Yantai, China; however, red tides occurred frequently and have caused huge economic losses in this bay in recent years. Overall, the results show the P limitation in Sishili Bay, and reveal that red tides were caused by eutrophication from terrestrial inputs and local warm weather, particularly during rainy periods. Therefore, to control red tide, greater efforts should be made to reduce sewage discharges into Sishili Bay, particularly during rainfall seasons.