Competition for space between coral reefs and macroalgae has a significant impact on coral cover and, consequently, on the sustainability of coastal ecosystems. This study aimed to ascertain the Sempu Strait's substrate coverage, dominant coral reef lifeform, coral-macroalgae competition, and water quality. The Underwater Photo Transect method and the CPCe software are used to monitor coral reefs. The condition of the approximately 11.5% of living corals was deemed to be substandard. The western portion of the Sempu Strait is dominated by encrusting, branching, and massive corals, whereas the eastern portion is dominated by Acropora corals. Temperature varied between 26 and 35 °C, salinity varied between 17 and 35 ppt, pH varied between 7 and 8, water clarity varied between 2.25 and 2.73 m, and DO (dissolved oxygen) varied between 6.28 and 6.71 mg/L. Competition between corals and macroalgae is observed at multiple stations, including Banyu Tawar, Waru-Waru, and Watu Meja. This phenomenon can be attributed to the presence of suitable substrates such as sand, rubble, and pebbles, as well as favorable seasonal conditions and water quality that promote the growth of macroalgae. Essentially, macroalgae grow more rapidly than corals, resulting in competition for growing space.