The rate of technical development in bleaching of chemical pulp and the upgrading of process control and wastewater treatment systems in the pulp industry have been extremely rapid over the past few years. When assessing the environmental impacts of bleached kraft pulp mill effluents (BKMEs), it is therefore more important than ever to carefully characterize the bleaching process, the composition of the treated effluent, and the degree of exposure of sensitive target organisms in the receiving water body. These requirements have not always been fulfilled in previous reports on biological effects of BKMEs in Scandinavia. This work presents the results of a comprehensive field study of the impacts of a 350,000-tonne kraft mill, bleaching softwood and hardwood pulp in campaigns according to the sequence O(D25,C70+D5)(EOP)D(EP)D. The effluent is treated in an aerated lagoon with a mean retention time of 8-9 days, practically eliminating chlorate and resin acids, and reducing the discharge of adsorbable organic halogen (AOX) to an average of 1 t/day (1.3 and 0.4 kg/ADt for softwood and hardwood, respectively). The treated effluent is discharged through a 1.3-km-long diffuser, at a water depth of 9-12 m, into a well ventilated coastal area, giving a 1000-fold dilution within 3-4 km from the diffuser. The actual exposure of the coastal ecosystem to BKME components was determined by analysis of extractable organic chlorine in suspended solids and of conjugates of chlorophenolics in the bile of feral perch. Despite a major damage to the benthic communities that occurred about 10 years ago, and was due to large chlorate discharges at the time, no direct detrimental effects on benthic flora and fauna could be ascribed to the present BKME discharge. Instead, a clear recovery of the Fucus community, although not yet completed, could be demonstrated. Studies of the composition, abundance and biomass of the fish community, the recruitment and survival of fish fry, and the physiological status of perch, using a set of biomarkers, revealed that even in the most BKME-exposed area, only minor effects were detected. These effects were related to eutrophication/enrichment rather than to the action of toxic substances. The general effect picture, thus, was essentially of a different type than the one recorded in previous studies of mills, which used older technology and less effective process and effluent treatment control, and which were discharging into enclosed, shallow bays of the Baltic Sea.