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The perennial red macroalga Gracilaria vermiculophylla (Ohmi) Papenfuss has recently been introduced to the Baltic Sea and is a potential competitor to Fucus vesiculosus, the most common native perennial alga in large parts of the Baltic Sea. Gracilaria might interfere with Fucus through direct competition for resources. In addition, Gracilaria is a favoured refuge for mesograzers, which prefer to feed on Fucus. Mesocosm-experiments were conducted over one year in the Kiel Fjord in order to test the direct and indirect effects of Gracilaria on Fucus. Fucus was incubated with Gracilaria at three different densities and grazers in high or low abundances. High densities of Gracilaria inhibited the growth of Fucus adults and also reduced the half-life-time of Fucus germlings. Associated grazers also had a negative effect on Fucus adults. Our results suggest that Gracilaria is able to influence Fucus in the Baltic Sea through direct competition for resources and by exposing it to higher grazer pressure