Seagrass seed‐based restoration has been developed in several places worldwide, but disturbance at the vulnerable initial stages of seedling recruitment has proved to be a major bottleneck to successful restoration. A detailed investigation of seagrass seedling survival and growth at the earliest stages of seedling development is an important contribution to developing techniques to improve seedling establishment and survival. Here, we investigated the early seedling development of Posidonia australis and P. sinuosa as well as quantifying the variation in seedling survival and development under different seed‐based restoration methods. Early seedling development was documented in indoor aquaria during the first month after fruit dehiscence. In the second ex situ experiment, we determined the effects of three different restoration methods (surface sowing, seedling planting, and planting inside a hessian bag) on seedling survival and development over the first 2 months of life. In the first experiment, a primary root with the first root hairs developed after 7 days. After 1 month, roots were 20–60 mm in length, firmly establishing the seedling into the sediment. Compared to surface sowing, seedling planting and hessian bag restoration treatments did not significantly affect survival for P. australis but increased seedling mortality in P. sinuosa, although growth was greater (shoot and root lengths were approximately 50 and 40% longer, respectively). These aquarium‐scale experiments suggest that planting methods would enhance seedling establishment at larger scales in some species, promoting restoration of damaged seagrass habitats.