Photoinhibition of photosynthesis, defined as reversible decrease in the effective photosynthetic quantum yield, was measured in the Mediterranean red alga, Peyssonnelia squamata, using pulse amplitude modulation (PAM) chlorophyl fluorescence and oxygen production on site. This alga is adapted to very low fluence rates of solar radiation and is easily inhibited by exposure to excessive radiation. At high solar angles its photosynthetic capacity is impaired even in its natural habitat, in the protective shade of overhanging rocks. oxygen production was maximal at 5 m depth and decreased to almost zero at the surface. When exposed at the surface oxygen production ceased within 16 min. The optimal photosynthetic quantum yield, defined as F-v/F-m, was about 0.45 in dark-adapted specimens. After 30 min of exposure to unattenuated solar radiation the (effective, F-v'/F'(m)) quantum yield decreased to below 0.1. Removing solar UV (especially UV-B) significantly reduced photoinhibition: the quantum yield of a sample exposed under a UV-B cut-off filter was double that of a sample exposed to full solar radiation after 30 min exposure. Recovery from photoinhibition took several hours and was not complete after prolonged exposure (1.5 h) to direct solar radiation. The degree of photoinhibition depended on the depth at which the thalli were exposed. Recovery from photoinhibition was complete within 2 h except when the algae were exposed at the surface. When measured over the whole day, the effective photosynthetic quantum yield significantly decreased by about 25% from initially high values toward early afternoon and rose again towards evening. The data indicate that this alga is adapted to very low irradiances and is easily inhibited by excessive solar radiation; solar UV contributes substantially to the observed photoinhibition.