The peacock eel Macrognathus aral is a popular ornamental and food fish species found in the Eastern Ghat region of India and Pakistan, Sri Lanka, Bangladesh, Nepal and Myanmar. The species is classed as Low Risk near threatened in the CAMP report. Peacock eel inhabits shallow waters of plains, wetlands, canals, paddy fields, beels and slow-moving rivers with vegetation. Captive breeding is the only way to fulfil demand and protect wild stocks. This article documents the first successful reported captive breeding of M. aral, embryonic development and larval rearing.