Successful captive breeding of Caridina hodgarti, a native Indian ornamental freshwater shrimp, requires meticulous simulation of its natural stream habitat. This study details a standardized protocol for aquarium-based rearing and breeding, employing a 24″ × 18″ × 18″ tank setup with dark soil substrate, dual-stage sponge and canister filtration and stable temperature maintenance between 22–26°C. Habitat enrichment with aquatic plants, driftwood, rocks, and natural substrates enhanced survival rates and juvenile retention, while effective biological filtration and low-flow circulation maintained a stable ecological balance. Water quality was rigorously managed through routine testing and 25–30% weekly water changes, with a customized reverse osmosis (RO) and tap water mix to maintain pH levels between 6.5 and 7.5 and total hardness between 50 and 75 ppm. A diverse feeding regimen comprising spirulina-enriched pellets, blanched vegetables and natural detritus (almond leaves and driftwood) promoted healthy moulting, vibrant pigmentation and active foraging behavior. Reproductive indicators—including berried females and juvenile emergence—were consistently observed under these conditions, validating the system’s suitability for full life-cycle support. The results present a replicable model for ex situ conservation and commercial production of C. hodgarti, offering a sustainable alternative to wild stock collection in the ornamental aquaculture sector.