A sediment budget was developed for southern Monterey Bay, California. This budget is based heavily upon sediment information obtained from field and laboratory studies. These studies included a detailed quasi-synoptic areal sampling to determine distribution of textural patterns, and a time-series study of beach and surf-zone sand samples obtained from local sand-mining companies. Results from these studies were combined with data on river discharge, the wind and wave regimes, and shoreline changes during the past century to develop quantitative estimates of sediment gains and losses to the cell. It was determined that the major sources of sediment are the discharge from the Salinas River which empties into the northeast corner of the cell, and erosion of Quaternary seacliffs which form the inner bay shore. Major sinks are the Monterey Submarine Canyon, active coastal dune fields, the mining companies, and the offshore area. The recent history of the sediment regime in the southern bay is reviewed, and a forecast of future nearshore changes is made. Recommendations for further work needed to refine the budget computations are presented. (Author).