The flameback pygmy angelfish Centropyge aurantonotus, highly appreciated and valued by the aquarium market, is heavily harvested and traded. Temperature is one of the abiotic factors that has the most influence on fish development, especially in the early stages of life. For captive production, it is essential to know the appropriate environmental parameters for each species. In this sense, this study aimed to evaluate the influence of temperature on the embryonic development and hatching rates of C. aurantonotus incubated at six different temperatures (20, 22, 24, 26, 28, 30°C). Embryonic development events were very similar in terms of morphological and chronological characteristics compared with other species of the genus Centropyge. Incubation time was inversely proportional to temperature. The treatment at 22°C required twice the time of that required by 30°C treatment for hatching to occur. The best incubation temperature range was 24–28°C. Values below 22°C and at 30°C showed lower hatching rates compared with other treatments. Based on these results, the recommended temperature at which to incubate C. aurantonotus eggs is between 24–28°C.