ABSTRACT. A basic tenet of nitrogen utilization in phytoplankton is that ammoniuln inhibits nitrate uptake. Consequently, it is generally believed that little or no nitrate uptake occurs at ammonium concentrations above ca 1 yM. A thorough review of field studies shows that the reduction of nitrate uptake rate in the presence of ammonium is rarely so severe, and that it is a highly variable phenomenon. To simplify quantification of the interaction between nitrate and ammonium uptake, it is proposed that it be divided into an indirect interaction, preference, and a direct effect, inhibition. In order to determine preference and inhibition it is necessary to measure uptake of each inorganic nitrogen source alone and in the presence of increasing concentrations of the other nitrogen source. Preference for ammonium uptake is manifested primarily in a higher V,,,,, and lower K, for ammonium uptake than for nitrate uptake and is accentuated by low light and low nitrogen availability. However, although ammonium is the preferred nitrogen source for uptake, growth rates on nitrate usually equal or exceed those on ammonium. Inhibition of nitrate uptake by ammonium is much more variable, but when separated from preference is less extreme. It is also enhanced by low light, but unlike preference, i t is greater when phytoplankton are N sufficient. Species differences are apparent for both preference and inhibition, but there are only enough data for preference to determine how it varies among algal groups. Finally, there are reports of low concentrations of ammonium stimulating nitrate uptake and of nitrate inhibiting ammonium uptake. Such unexpected interactions along with variations in preference and inhibition with species composition and environmental conditions may account for the variability observed in field studies and will not be explainable or predictable until more is known about the underlying biochemical mechanisms. Even though it is not possible at present to model nitrate uptake accurately because of uncertainty about the interaction between ammonluln and nitrate uptake, it is quite evident that the simplistic view that nitrate uptake is reduced to zero if ammonium exceeds 1 1iM would often result in large underestimates of nitrate uptake and new production.