The population dynamics of Pandalus gracilis was investigated in the southeastern coastal area of Korea between May 1998 and April 2000. Of the 4,127 specimens, 57% were identified as females, 39% as males, and 4% as transitional hermaphrodites. The number of females was greater than that of males and transexuals. A significant correlation was observed between the number of transitional hermaphrodites and ambient seawater temperature. Growth parameters were estimated using the modified von Bertalanffy growth function model incorporating seasonal variation in growth using the program ELEFAN. Females grew faster and reached a larger size-at-age than males (K=0.65/y and $L_{infty}$=17.86 mm carapace length [CL] for females; K=0.51/y and $L_{infty}$=14.70 mm CL for males). Mean size and age (95% confidence limits) at sex transition, calculated from growth parameters, were 7.07 mm carapace length and 1.05 years, respectively. The reproductive strategies of pandalid shrimps are discussed in terms of the type of sex transition.