Macroalgal beds are increasingly recognised as nursery habitats for coral reef fish; however, the extent to which they are used as a source of food and/or a refuge from predation remains largely unexplored. Here, we investigate the distribution, feeding behaviour, diet, and predation risk for juvenile rabbitfish in macroalgal habitats on Orpheus Island, Great Barrier Reef. Visual surveys revealed that juvenile and adult Siganus doliatus had different among-habitat distributions with juveniles being largely restricted to the reef flat and positively associated with macroalgal cover, while adults were abundant on the reef crest. Focal feeding observations show that within macroalgal habitats, juvenile S. doliatus targeted epiphytes on Sargassum (80% of bites), with relatively few bites taken on turfs or the Sargassum itself (27% and 8%, respectively). These observations were supported by stomach content analyses with filamentous algae being the dominant item in the stomach content of both small (< 4 cm total length, TL; 58%) and large juvenile S. doliatus (> 4 cm TL; 47%). The stomach content of juvenile S. doliatus, S. canaliculatus, and S. spinus collected from macroalgal habitats was similar, consisting primarily of filamentous algae and detritus. We found no relationship between the abundance of potential predators and juvenile rabbitfishes across the study sites. Collectively, our results suggest that juvenile rabbitfishes are using macroalgal habitats on this, and potentially other, inshore reefs as a food source and add to a growing body of literature highlighting the importance of these habitats for the early life stages of reef fish.