Haliclona indistincta has in some respects, a typical reproductive cycle for a marine haplosclerid sponge. We suggest that oocytes originate from archaeocytes and that spermatozoa originate from choanocytes. Oocytes were first seen in November and matured as eggs by May and June. Immature spermatic cysts were identified from February and mature cysts were present in May and June only. Of the individuals surveyed that had reproductive elements present (150/200), reproductive elements from a single sex were reported in over half of the specimens (59%) but there were also many hermaphrodites (41%). Embryos were first seen in June. Larvae were distributed throughout the mesohyl and were released from the end of June to the end of July. Three mobile larval stages and fusing of sibling larvae were observed. Post-settlement stages from early settlement to the development of oscula and excurrent canals are also shown. However, some elements of the larvae (uniform ciliation and no spicules at posterior pole) are not consistent with larvae from this genus.