A probable vertical mode of piscine nodavirus transmission is reported in the present investigation based on a case of nodavirus associated larval mortalities in hatchery produced Asian sea bass. Polyclonal rabbit anti-SJNNV antibodies (SGWak97) detected the viral antigens in the tissue sections from the eggs and the larvae at different time intervals from − 1 to 42 days post hatch (dph). Immunopositive ovarian connective tissue associated with the oocytes along with the progressive localization of the viral antigens in the brain, spinal cord, liver, stomach and dermal musculature during the larval development indicates a probable vertical transmission of nodavirus in the Asian sea bass. The surviving larger larvae, from the batch suffering mass mortalities, produced very intense immunofluorescent positivity in the liver, stomach and dermal musculature. Results of this investigation demonstrating a possibility of vertical transmission of the nodavirus emphasize the need for screening of eggs and larvae for evolving suitable preventive and prophylactic health management strategies.