Dwarf rainbowfish (Melanotaenia praecox) are an ornamental fish with a high added value and considerable commercial interest. However, little information is known about the organism's reproductive biology, especially the early stages of embryonic development (initial ontogeny). Melanotaenia praecox embryos were examined throughout development to describe the dwarf rainbowfish initial ontogeny. Eggs were incubated at 28°C, and observations were recorded at pre-determined times. Development stages were identified and classified according to morphophysiological characteristics. The initial size of the eggs ranged between 0.99 and 1.04 mm. Oil droplets were observed in the eggs, and fixing filaments for adhesion were observed in the corium. Embryonic development was similar to that of other species in the genus Melanotaenia, in which hatching begins 119.50 h post-fertilisation or 3405.75 degree-h post-fertilisation. The main features of the newly hatched larvae were excellent swimming activity, a reduced yolk sac, mouth movement and an apparently functional digestive system.