Codium fragile is commercially farmed in Korea by natural blooming zygote attachment. Experiments found optimum conditions for artificial seed production and nursery culture of C. fragile by asexual reproduction. Isolated utricles and medullary filaments were regenerated to erect thalli using both indoor and outdoor culture experiments. Under the indoor culture conditions, irradiance was an important factor to control the development of erect thalli. Formation of erect thallus from the isolated medullary filaments in the indoor culture was induced after 30 days under $20^{circ}C$ and $60{mu}mol/m^2/sec$. The detachment of isolated utricles and medullary filaments from the substrates of seed strings was reduced by exposure to the air during 2 hrs before the indoor culture of seed strings. The maximum growth and development of erect thalli in the nursery culture was induced at a water depth of 0.5 m. Depending on the substrates of the seed strings the growth of erect thalli was not significantly different (p>0.05).