There is a long and widely held view that Ae. albopictus, the vector of Dengue, Chikungunya, Zika and Yellow fever breed only in fresh water habitats. Larval source reduction efforts worldwide, therefore focus on freshwater habitats of this vector. However, Ae. albopictus was recently shown to undergo larval development in brackish water with salinity up to 15 ppt in various parts of the world. In the present study breeding of Ae. albopictus was detected in three types of breeding habitats with brackish water viz., shallow ponds, plastic containers and discarded bottles in the coastal areas of Kannur and Kozhikode districts of Kerala, India. The salinity of water in these habitats ranged from 2.6 to 4.5 ppt. When tested in laboratory, the highest salinity tolerance was found to be 12 ppt. Since dengue is the most important mosquito-borne disease in the state, adaptation of Ae. albopictus to coastal brackish water habitats could have major consequences for the dengue scenario in the state. Besides dengue, Chikungunya and Zika are also prevalent in the state. This necessitates a need for constant monitoring of brackish water breeding habitats of the state and initiate appropriate control measures wherever necessary, in order to prevent the diseases vectored by Ae. albopictus.