Picoplankton (cells with a diameter of 0.2-3.0 μm) is the dominant contributor to both primary production and biomass in the ocean. Most of the previous studies on picoplankton have been conducted in the oligotrophic open sea with few in the eutrophic area. In this study, we investigated the dynamics of different groups of picoplankton and the diversity of picoeukaryote (based on 18S rDNA) in a hyper-eutrophic marine coastal lagoon. The results indicated that temperature and phosphate concentration were most responsible for the dynamics of different picoplankton groups. Examination of 135 clones revealed 27 different Denaturing Gradient Gel Electrophoresis (DGGE) patterns. At least 7 high-level taxonomic groups of picoeukaryote were recorded. The picoeukaryotic diversities included Alveolates, Stramenopiles, Haptophyceae, and Viridiplantae, with Stramenopiles being the most diverse group. Overall the results of this study indicated that picoplankton diversity was low relative to studies conducted in more oligotrophic waters.