The present work aims to assess the spatial distribution, analyze shell utilization, shell fitness and determine the effect of coexistence of two hermit crabs Calcinus latens and Clibanarius signatus on used shell resources in various habitats on the Red Sea Coast. Also, to determine the choice of shells and investigate the shell species preference of C. latens and C. signatus in the laboratory. The hermit crabs C. latens and C. signatus were found to occupy shells of 39 gastropod species. The most commonly occupied gastropod shells are those belonging to genera Strombus, Nerita, Cerithium and Planaxis. The results showed that crab individuals utilized mainly the shell with elongate aperture. Laboratory experiments showed that two crab species preferred shells of Strombus followed by Cerithium and Nerita when offered shells of nearly similar size (optimal). Crab individuals showed a significant preference for optimal sized shells when given suboptimal shells as an alternative choice. Also, the hermit crabs avoid damaged shells when given a choice of optimal sized damaged shell and optimal sized intact one. In addition, two hermit crab species chose shells of smaller than optimal size when given a choice of damaged optimal sized shells and smaller intact ones. On the other hand, field observations showed that most crab individuals lived in adequate sized shells. The present data conclude that shell selection by hermit crabs C. latens and C. signatus depends mostly on shell internal volume, shell quality and shell aperture size than other factors, because they provide a maximum protection for hermit crabs.