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The stable isotope composition of ostracod fossils is useful for palaeoenvironmental reconstruction. Laboratory as well as 'natural environment' cultures demonstrate that the carbon and oxygen isotope compositions of ostracod shells faithfully record the environmental conditions at the time of valve precipitation. Oxygen isotope composition of ostracod calcite reflects the composition and temperature of the host water, but ostracod shells are enriched in 18O compared to the value expected for inorganic calcite precipitating under equilibrium under the same conditions. This 'vital effect' is generally constant for closely related species and equals 1.5 to 3 0/00 for Candoninae, 0 to 2.5 0/00 for Cyprididae and 0.8 to 1.5 0/00 for Cytheroidea. The carbon isotope composition of ostracod calcite is controlled by a complex interaction between the ecology of the species and environmental parameters. Previous natural environmental studies suggest that many (but not all) taxa crystallize their shells in or very close to equilibrium with the carbon isotope composition of dissolved inorganic carbon, and that the composition of littoral, epifaunal species reflects seasonal variation in the carbon isotope composition of dissolved inorganic carbon of bottom water according to their life cycles, while that of deep-water, infaunal species reflects the variation interstitial pore water according to microhabitat preferences.