ABSTRACT1. Diving surveys were undertaken to investigate the effects of marine reserve protection on spiny lobster (Jasus edwardsii) populations at Tonga Island Marine Reserve, northern South Island, New Zealand over a 2 year period from December 1998 to December 2000.2. Spiny lobsters were 2.8 times more abundant overall, and mean size was 19 mm carapace length larger in shallow transects and 28 mm carapace length larger in deep transects, in the marine reserve than at adjacent fished sites. That pattern was evident despite very high variability within sites, and among sites within reserve and fished areas.3. Large reproductive males were 10 times more abundant within the reserve compared to adjacent fished areas, suggesting that more eggs would be fertilized in the reserve than on the adjacent fished coast.4. Estimates of size-specific fecundity, combined with abundances of females, suggested that almost nine times more eggs would be produced in the reserve than in fished areas.5. Diving and commercial trapping investigations found weak trends in spiny lobster abundance consistent with gradients at reserve borders. Tagging investigations near those borders led to only one resighting of a tagged spiny lobster.6. We estimate that the mean abundance of spiny lobster in the reserve has increased by 22%, 5 years after its establishment, indicating an annual population increase of 4.4%. Over the same period, abundance of spiny lobster outside the reserve has declined by 2.9% per annum.7. Based on known spiny lobster movements, we suggest that marine reserves of more than 10 km length should be given priority over smaller reserves. Smaller reserves will, however, protect part of the population for at least a portion of their lifespan.8. Previous studies of movement of J. edwardsii suggest that spillover from the reserve should occur, and as population density increases we predict that more spiny lobsters will move out from the reserve.