Steinernematid nematodes form a developmentally arrested infective juvenile (IJ) stage at the second moult, when conditions inside the insect host are no longer suitable for further reproduction. In a liquid culture micro-assay two environmental cues were shown to influence the formation of Steinernema feltiae IJs. High nematode population density induced IJ formation, suggesting the presence of a nematode pheromone. Bacterial food and soluble nutrients acted competitively to reduce the frequency of IJ formation. Frequency of IJ formation was greatest when lst-stage juveniles were subjected to IJ-inducing conditions. The optimum temperature range for the IJ induction response was 25–30°C. These findings suggest that maximal IJ production in large-scale liquid culture will depend on the correct balance of nematode population density and nutrient availability at the peak of egg hatching.