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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 dyayZoeh49dp80Dt26GMgg==

<SEC-DOCUMENT>0001181431-07-063158.txt : 20071022
<SEC-HEADER>0001181431-07-063158.hdr.sgml : 20071022
<ACCEPTANCE-DATETIME>20071022172452
ACCESSION NUMBER:		0001181431-07-063158
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071018
FILED AS OF DATE:		20071022
DATE AS OF CHANGE:		20071022

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			pSivida LTD
		CENTRAL INDEX KEY:			0001314102
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			C3
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		LEVEL 12 BGC CENTRE
		STREET 2:		28 THE ESPLANADE
		CITY:			PERTH
		STATE:			C3
		ZIP:			6000
		BUSINESS PHONE:		61 8 9226 5099

	MAIL ADDRESS:	
		STREET 1:		LEVEL 12 BGC CENTRE
		STREET 2:		28 THE ESPLANADE
		CITY:			PERTH
		STATE:			C3
		ZIP:			6000

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Finlay Aaron
		CENTRAL INDEX KEY:			0001410242

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51122
		FILM NUMBER:		071183780

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		617-972-6278

	MAIL ADDRESS:	
		STREET 1:		C/O PSIVIDA LIMITED
		STREET 2:		400 PLEASANT STREET
		CITY:			WATERTOWN
		STATE:			MA
		ZIP:			02472
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd175666.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-10-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001314102</issuerCik>
        <issuerName>pSivida LTD</issuerName>
        <issuerTradingSymbol>PSDV</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001410242</rptOwnerCik>
            <rptOwnerName>Finlay Aaron</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O PSIVIDA LIMITED</rptOwnerStreet1>
            <rptOwnerStreet2>400 PLEASANT STREET</rptOwnerStreet2>
            <rptOwnerCity>WATERTOWN</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02472</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Secretary</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Options to purchase Ordinary Shares</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.1230</value>
                <footnoteId id="F2"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-10-18</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>750000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-09-30</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Ordinary Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>750000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>750000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Mr. Finlay  holds options for 750,000 ordinary shares; One-third of them vests on the first anniversary of the date of grant; another one-third vests on the second anniversary of the date of grant; and the reminder of the options vest on the third anniversary of the date of grant.</footnote>
        <footnote id="F2">The exercise price was converted from A$0.1375 using the noon-day rate of exchange of the Federal Reserve Bank of New York on October 18, 2007. The actual exercise price will be the Australian dollar amount regardless of the exchange rate on the date of grant or of exercise.</footnote>
        <footnote id="F3">One-third of the options are exercisable on October 18, 2008; another one-third of the options are exercisable on October 18, 2009; and the remainder options are exercisable on October 18, 2010.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Lori Freeman, Attorney-in-Fact</signatureName>
        <signatureDate>2007-10-22</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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