Habitat distribution and species diversity of coral reef fishes in the reef slope of Kavaratti atoll was studied by the visual census method during January 1991 to June 1992. Twenty seven families represented by 121 species, the highest for any sub-habitat of the atoll were recorded. The community diversity, also the highest both for families and species was 3.32 and 4.45 respectively. Family assemblages were not stable between censuses and pre-monsoon, monsoon and post-monsoon seasons. Labridae, Chaetodontidae, Balistidae, Pomacentridae and Acanthuridae were the most specious families. Low abundance of coral feeders indicated unhealthy reef condition. While dominance of some surgeonfish indicated availability of algal food, balistids provided clues for topographic complexity.