We introduce pseudoalgebras for relative pseudomonads and develop their theory. For each relative pseudomonad , we construct a free–forgetful relative pseudoadjunction that exhibits the bicategory of -pseudoalgebras as terminal among resolutions of . The Kleisli bicategory for thus embeds into the bicategory of pseudoalgebras as the sub-bicategory of free pseudoalgebras. We consequently obtain a coherence theorem that implies, for instance, that the bicategory of distributors is biequivalent to the 2-category of presheaf categories. In doing so, we extend several aspects of the theory of pseudomonads to relative pseudomonads, including doctrinal adjunction, transport of structure, and lax-idempotence. As an application of our general theory, we prove that, for each class of colimits , there is a correspondence between monads relative to free -cocompletions, and -cocontinuous monads on free -cocompletions.

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