As the algae blooms in the Taihu Lake of our country are more and more frequent and have become to be a big threat to ecosystem environment, aquatic breeding industry and human health. In this paper, by summarizing current research conditions on the algae blooms forecast, with MODIS data and ground collecting data in the Taihu Lake in China, the authors use a new concept to construct the algae blooms prediction model. This concept considers the optical characteristics of the four periods of algae blooms and also the affects of meteorology and hydrology environment. This model is in hope of to forecast and early warning in the future. 1.