patterns of distribution and abundance of giant sea anemones and anemonefish were compared among coral reefs along the coastline of sinai in the northern red sea. the sea anemones varied widely in abundance between reef areas containing different habitat types. they were rare on steep reef slopes with abundant coral cover (=low-density anemone sites, 0.09–0.68 anemones per 1000 m2 of reef area), but were common at a site containing patch reefs interspersed with sand (=high-density anemone site, 6.00–8.11 anemones per 1000 m2). distributions of the endemic two-band anemonefish (amphiprion bicinctus) varied significantly between the two main host anemone species. at the high-density site, individuals of the sea anemone heteractis crispa either did not contain anemonefish, or were occupied by single juvenile fish as shown in previous studies. at low-density sites h. crispa usually hosted clusters of juvenile anemonefish. in contrast, individuals of the sea anemone entacmaea quadricolor hosted either single adult fish (high-density site) or pairs of breeding adults (low-density sites), frequently in addition to some juvenile fish. mechanisms that prevent anemonefish from reaching adult size and forming breeding pairs in h. crispa may include high fish mortality above a size threshold because this host cannot adequately protect them from predation when they become large, active emigration of fish to e. quadricolor as described in previous reports, and/or environmentally-controlled cessation of fish growth. we conclude that in the northern red sea, individuals of h. crispa potentially serve as nurseries for anemonefish.