Aim: To assess the optimum protein and lipid requirement of Anabas testudineus at its fry stage, based on the growth performance, feed efficiency and nutrient gain efficiency. Methodology: Eight experimental diets were prepared with four protein (35, 40, 45 and 50 %) and two lipid (9 and 13%) levels. The diets were designated as D1 (35 P/9L), D2 (35 P/13 L), D3 (40 P/9 L), D4 (40 P/13 L), D5 (45 P/9 L), D6 (45 P/13 L), D7 (50 P/9 L) and D8 (50 P/13 L). Each of the experimental diets was fed to triplicate groups of 10 fishes with an average individual body weight of 1.23 g in 24 glass aquaria. The diets were fed at about 4 % body weight per day in two equal rations for a period of 60 days. Results: Significantly (p<0.05) higher weight gain (428 %), specific growth rate (2.77 % day-1), feed efficiency ratio (0.69) and protein efficiency ratio (2.34) and lower (p > 0.05) food conversion ratio (1.45) was observed in fish fed with diet D5 (45% protein and 9% lipid). The nutrient retention parameters like protein retention, protein productive value, lipid productive value and apparent net protein utilization were also significantly (p < 0.05) high in the treatment group D-5 fed with diet containing 45% protein and 9% lipid. Significantly (P<0.05) higher whole body protein content was observed in the treatment group D5 (45% protein / 9% lipid) along with D4 and D6. Interpretation: The present findings on optimum protein and lipid requirement of 45% and 9%, respectively will help in formulating the cost-effective practical diets for Anabas testudineus fry, which is essentially required for quality seed production and grow out culture of this species in a commercial scale.