Dhamra estuarine ecosystem is a hotspot of rich biological diversity which supports a patch of mangrove along with unique flora and fauna. In this study, the diversity of phytoplankton population and other factors that control their growth and biodiversity were investigated. The samples were collected monthly from Dhamra estuary of Bay of Bengal at 6 different stations (grouped under three regions) from March -2008 to February -2009. A total of 41 genera of phytoplankton species belonging to 4 classes of algae were identified. The maximum value of 9.3 X 10 4 cells l -1 was recorded in post monsoon season. Phytoplankton of Bacillariophyceae, appearing throughout the year, and represent majority of population (75-94%) at all the sampling stations, followed by Dinophyceae (3-14%), Cyanophyceae (3-8%) and Chlorophyceae (0-4%) classes. The Shannonweavers diversity index (H) remains between 0.22 and 2.49. Based on the correlation coefficient data, phytoplankton shows positive relationship with DO, salinity, nutrients and negative relationship with temperature and turbidity. Present study shows that the occurrence and diversity of these primary producers do not subscribe to a single dimensional phenomenon of a single factor, rather than, a consequence of a series of supported factors which will help to maintain and balance such type of fragile ecosystem. @JASEM