Shells of windowpane oyster [Placuna placenta (L)] in the intertidal zone of the Zuari estuary, Goa, were often found to be black in color. Microscopical observation of partially decalcified shells showed the presence of cyanobacterial filaments encrusted with black precipitate. Microchemical test (Prussian blue reaction) and wavelength dispersive x‐ray analysis confirmed this precipitate to be of iron. Mineralogical studies of this black precipitate, using x‐ray diffraction and scanning electron microscopy, suggested the presence of iron as iron oxides. The cyanobacteria from such black shells were cultured in enriched seawater medium. In this medium also they precipitated iron as confirmed by Prussian blue reaction. They were identified as Plectonema terebrans Born et Flah and Phormidium sp.