Lonar Lake is natural water body situated in Buldhana district of Maharashtra. It is a alkaline and saline water habitat. In order to study in detail algal diversity of Lonar Lake, algal samples were collected from 10 selected sites of lake and taxonomic study was carried out. Research work was carried out for the period of two consecutive years i.e. from October 2015 to September 2017. A total of 79 species of algae, under 39 genera were identified and recorded. Cyanophycean algae were found dominant. Arthrospira platensis was found dominant at all selected sites of Lonar Lake throughout the period of study. Abundance of Cyanophycean algae in Lonar Lake indicates that alkaline and saline water supports luxuriant growth of Cyanophycean algae. Algal flora of Lonar Lake is rich and it is found in diverse form. Present study enrich the knowledge of algal diversity of alkaline and saline water habitat.