Because of their likely ecological importance, the effects of understory kelps on fluid and paniculate transport near the bottom were assessed in waters of the San Juan Archipelago, Washington, U.S.A. Relative to more exposed rocky substrata at identical depths, bottoms beneath kelp canopies were exposed to weak fluid transport and were characterized by greater rates of deposition of particulates. A tracer particle experiment demonstrated that kelps inhibited transport of suspended particles from the overlying water column to the bottom. Thus, the higher rates of paniculate deposition beneath kelp canopies probably were caused by longer particle residence times and higher probabilities of paniculate redeposition beneath canopies and not by higher rates of particle import. These hydrodynamic effects may play important roles in the ecology of animals that inhabit understory kelp environments. We propose several potential effects of flow modification by kelps on larval recruitment and dispersal and growth of suspension-feeders.