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Herbivores control algae and promote coral dominance along coral reefs. However, the majority of previous studies have focused on herbivorous fish. Here we investigated grazing effects of the sea urchin Diadema savignyi on algal abundance and coral recruitment processes. We conducted an in situ cage experiment with three density conditions of D. savignyi (0, 8, 16 indiv. m -2 ) for three months during the main coral recruitment season in Taiwan. Results demonstrated a strong algal control by D. savignyi. At the end of the experiment, average algal cover was 95% for 0 indiv. m -2 , compared to 47% for 8 indiv. m -2 and 16% for 16 indiv. m -2 . Average algal biomass at 8 indiv. m -2 declined by one third compared to 0 indiv. m -2 and almost zero at 16 indiv. m -2 . On the other hand, a negative grazing effect of D. savignyi was observed on coral recruitment processes. Notably, at 16 indiv. m -2 , the density of coral recruits declined and mortality of small coral fragments (proxy of coral juveniles) increased. Our results confirm findings of previous studies and indicate the need to balance both positive (strong algal control) and negative (physical damage) influences of Diadema grazing to facilitate the coral recruitment process.