Phenolic compounds, packaged within vesicles known as physodes, are a major cytoplasmic constituent of eggs and zygotes of the Australasian fucoid Hormosira banksii. Physode movement in early life stages of Hormosira is described. We have used the cytoskeletal inhibitors cytochalasin B, latrunculin B and nocodazole added during different stages of development to investigate the role of the cytoskeleton in movement of these vesicles to regions of active wall formation in the growing rhizoid tip and the plane of cytokinesis prior to cell division. Actin inhibition prevented polarization, cross-wall formation and physode movement. When microtubules were disrupted polarization was still possible, but cross-wall formation and physode movement were prevented. Both actin microfilaments and microtubules are necessary to move physodes to regions of accumulation and active wall formation.