Lady beetles are important predators in nature. Some species, including the two-spotted lady beetle, Adalia bipunctata L., are native to North America, whereas others, such as the seven-spotted lady beetle, Coccinella septempunctata L., have been introduced in North America for pest control on agriculture crops. Microsporidia are obligate pathogens that cause chronic disease, and these pathogens are known to infect several lady beetle species. Lady beetles are cannibalistic and, because many species share a given landscape, there is potential for microsporidia to infect susceptible coccinellids when infected eggs are eaten. The objective of this study was to examine the effects of the microsporidium Nosema adaliae isolated from A. bipunctata on C. septempunctata fitness (larval development and mortality, sex ratio, adult longevity and fecundity). Mortality was higher for C. septempunctata larvae that ate four A. bipunctata eggs (≥96% mortality) than for those that ate only one (<63.8%), suggesting that the mortality observed was influenced by the number of eggs eaten. A. bipunctata eggs contain adaline and adalinine, two species-specific alkaloids that have been shown to be detrimental to C. septempunctata larvae. Development of larvae that consumed one uninfected or one N. adaliae-infected A. bipunctata egg, did not differ significantly (20.5 ± 0.2 d and 21.3 ± 0.4 d, respectively) and, although mortality remained high for these larvae (53.5% and 65.6% mortality, respectively), these values also did not differ significantly (p = 0.05). Over a 60-d period, mean fecundity for C. septempunctata adults that ate one uninfected A. bipunctata egg as first-instar larvae was significantly greater (776.6 ± 122.0 eggs) than those that ate one N. adaliae-infected egg (335.6 ± 86.6 eggs, p = 0.005). Larvae from the former group also lived significantly longer (58.2 ± 1.8 d) than did those from the latter group (38.4 ± 6.4 d, p = 0.010). Sex ratios of adult beetles did not differ significantly. Because A. bipunctata and C. septempunctata share similar habitats, it is reasonable to expect these two coccinellids to encounter one another in nature. Results of this study show that the consumption of only one infected A. bipunctata egg by C. septempunctata larvae can result in high larval mortality and reduced fecundity.