Under favorable conditions, the Dwarf Pencilfish can breed in a home aquarium. Often, some fry survive even without the aquarist's deliberate intervention. However, to increase the chances of success, the breeding process should be controlled. Dense thickets of low-growing plants, such as Java moss, can be placed at the bottom of the aquarium, or artificial spawning substrates can be used, among which the fish will lay their eggs. Since parental instincts in Nannostomus are weakly developed, the eggs will likely be eaten if not transferred to a separate tank with identical water conditions. It is recommended to place Indian almond leaves from the main aquarium into this tank (if they were present). During decomposition, colonies of microorganisms, such as paramecia, form on the leaves, which will serve as excellent first food for newly hatched fry. Alternatively, specialized foods with particle sizes from 5 to 50 microns can be used, gradually transitioning the growing fish to brine shrimp nauplii.