Larval behavior plays an important role in dispersal and settlement of marine organisms with cues from the environment often providing crucial guidance for facilitating these processes. The postlarvae, or pueruli, of the southern rock lobster, Jasus edwardsii (Hutton, 1875), are known to migrate over long distances from oceanic water and settle on coastal reefs using a combination of onshore transport and active nocturnal swimming. In laboratory experiments, we examined environmental cues used for this migration, specifically whether chemical cues in coastal vs oceanic seawater influenced their swimming orientation and their rate of development to juveniles. In total, 66% of pueruli actively swam toward coastal water rather than oceanic water (n = 41), indicating that they may use chemical cues in their settlement processes. Holding pueruli in coastal water vs artificial seawater did not expedite the development of pueruli to benthic juvenile stage, indicating that other cues could be important to the final settlement process. The present study suggests that chemical cues are being used in settlement processes during the onshore migration to settlement sites in this ecologically and economically important species.