Mangroves grow mainly in the ecologically sensitive zones between land and sea in the tropical and subtropical regions. The root system of mangroves provides a suitable substratum in which many species of organisms thrive. The mangrove roots are overgrown by epibionts such as algae, bivalves and crustaceans, etc. The soft substratum in the complex structure provided by pneumatophores, proproots, trunks, fallen branches and detritus forms habitat for various benthic species. And the space between roots provides shelter and food for motile fauna such as prawns, crabs and fishes. Leaf litter of mangrove is transformed into detritus, which is part of the mangrove food web along with plankton, epiphytic algae and microphytobenthos. By providing a high abundance of food and shelter, and low predation pressure, mangroves form an ideal habitat for a variety of aquatic animals, during part or all of their life cycles. Similarly, mangroves may function as nursery habitats for commercially important crab, prawn and fish species, and support offshore fish populations and fisheries. For the development of sustained fishery and conservation of the mangrove ecosystem, we reviewed the habitat functions of mangroves for aquatic fauna and fisheries including the habitat values of mangrove ecosystems and the importance of litter in the mangrove food web. Future researches should be focused on separating the roles of mangroves from those of estuaries and other offshore habitats, and investigating the effect of the dynamic relationship between different habitats on fisheries.