For marine fish species that are demersal as adults, dispersal during the larval phase sets the spatial scale of population connectivity^1,2.Following this dispersal period, larvae must choose where to settle, and it has been argued this settlement decision is the most important process for benthic and demersal fish populations^3,4. Using the southern hulafish Trachinops caudimaculatus as a model, this study examines what factors play a role in habitat detection and selection at settlement. This study aims to determine 1) if hulafish use habitat associated olfactory cues to detect settlement habitat; 2) if hulafish exhibit gregarious settlement in the absence of variation in habitat complexity; 3) and if distribution and abundance of hulafish at settlement is influenced by canopy cover in the absence of adult conspecifics. Response to habitat associated olfactory cues was tested using a two-chamber choice tank, in which recently settled hulafish were exposed to pair-wise combinations of four odour treatments: 1) ambient seawater, 2) reef odour, 3) conspecific odour, and 4) reef and conspecific odour. The second and third aims were addressed by monitoring settlement patterns in two in situ experiments on artificial reefs: the first in which the density of adult conspecifics was manipulated, and the second in which the percent macroalgal cover was manipulated. Preliminary results from these experiments suggest presence of adult conspecifics is the strongest indicator of quality habitat for settling hulafish, with conspecific odour eliciting a strong behavioural response, and higher numbers of hulafish settling to reefs with higher conspecific densities.