A short term laboratory feeding trial was conducted to evaluate the importance of algae based value added feed for the popular ornamental fish Carassius auratus (Gold fish). The feed was tested against Daphnia — the conventional feed used for Goldfish. Fresh algal biomass of Nostoc ellipsosporum and Navicula minima were mixed with daphnia to formulate the value added feed and proximate composition of feeds were analyzed. The experimental feed showed significantly higher protein (71.24% ±0.3), lipid (33.47%±0.2), and carotenoid (6.41%±0.13) (Pd″0.05), and increased level of amino acids (4.2%±0.1) and carbohydrate (14.72%±0.2) content than the control feed. Similarly the fishes fed with experimental feed showed 2 fold increase in protein, glycogen and carotenoid level as compared to the control fishes. Morphometric study also showed significant Body weight Gain (3.52%±1.2) and Specific growth rate (0.87±0.41) together with high Protein Productive value (0.051±0.14), Protein effficiency ratio (0.074±0.05) and low Feed conversion ratio (0.024±0.03) in experimental fishes which signifies better utilization of feed by the fishes. The VAF (Value added feed) fed fishes showed positive results in both morphometry and carcass proximate composition. Differences in body weight gain and Feed conversion ratio together with increased protein, glycogen and carotenoid levels were significant than the control fishes. The colouration of the gold fishes induced by algal carotenoids was more bright and vibrant indicating high market value. © 2010, Zoological Society, Kolkata.