Critical cell density (CCD), the maximum cell concentration without mutual shading in algal cultures, can be used as a new operating parameter for high-density algal cultures and for the application of the flashing light effect on illuminated algal cultures. CCD is a function of average cell volume and light illumination area. The CCD is thus proposed as an index of estimation of mutual shading in algal cultures. Where cell densities are below the CCD, all the cells in photobioreactors can undergo photosysnthesis at their maximum rate. At cell densities over CCD, mutual shading will occur and some cells in the illumination chamber cannot grow photoautotrophically. When the cell concentration is higher than the CCD, specific oxygen production rates under flashing light were higher than those under continuous light. The CCD was found to be a useful engineering parameter for the application of flashing light, particularly in high-density algal cultures.