The goal of this study was to provide data supporting the use of lambda transgenic medaka (Oryzias latipes) embryos to evaluate mutagens in sediments. Embryos incubated directly on sediments dosed with the reference mutagen, benzo[alpha]pyrene (BaP), were examined for BaP uptake and metabolism. Mutant frequency and mutational spectrum were assessed in the cII transgene recovered from adult medaka livers exposed as embryos. Embryos rapidly accumulated 14C-BaP and metabolized BaP to polar metabolites, indicating sediment-sorbed BaP is available for bioaccumulation and medaka embryos are capable of bioactivating this mutagen. Exposure of embryos to BaP dosed sediments significantly induced cII transgene mutant frequencies with mutations predominantly being in G:C base pairs, consistent with known mechanisms of BaP mutagenesis in transgenic mice and fish.