The disposal of untreated urban and industrial wastewater has a deleterious effect on both the water and sediment quality of Oyster Bay located in south Sydney, Australia. The present investigation was undertaken to evaluate the potential pollution of marine sediments in Oyster Bay. The results of metals were compared with adverse biological effect values effect range low (ERL) and effect range median (ERM). Spatial distribution of trace metals was estimated by applying geographic information system. The results indicated that the sediments were polluted with Cu, Zn, As and Pb, which exceeded ERL levels. However, these metals were still below ERM values, and other metals Cr and Ni were below ERL. Moreover, the highest concentrations of metals were around discharge points and in the inner bay. Further, trace metals could be attributed to human activities within the bay as they declined in concentrations with increasing sediment depth.