Closed life-cycle breeding of aquaculture species is essential for sustainability. The primary bottleneck towards this goal is a robust commercial-scale hatchery technology. The larval phase of Palinurid lobsters is amongst the lengthiest of any marine invertebrates; hence a major leap forward in aquaculture hatchery technology is required for commercial-scale production. The main challenges for Palinurid hatchery technology development are outlined together including aspects of water quality and tank design. The larval biology of Palinurid lobsters is discussed as well as broodstock husbandry and spawning. A concise review of reported diseases is presented together with larval nutrition requirements and their relationship to final larval metamorphosis to juvenile.