Recently-settled 0-group juvenile cod (Gadus morhua and haddock Melanogrammus aeglefinus were observed by submersible dives and research bottom trawls to inhibit primarily a large pebble-gravel deposit located on the northeastern edge of Georges Bank at 70 to 100 m water depth. Pelagic juvenile gadids are widespread on the bank in late spring, but by late July, they have become demersal and are abundant only on the gravel bed. Coloration of the juveniles mimics the appearance of the pebble bottom, possibly making them less vulnerable to predation there than on the light-colored sand bottom of most areas of the bank. On the basis of these observations, we hypothesize that the gravel habitat favors their survival through predator avoidance and, possibly to a lesser extent through increased prey abundance. In particular, the pebble-gravel deposit on northeastern Georges Bank supports the largest aggregations of demersal juveniles, and it may be essential to the recruitment success of the Georges Bank gadid population. By September, the young fish are no longer present on the gravel bed because night-time feeding forays off the bottom result in their transport southeastward in the clockwise current gyre on the bank. The study area is characterized by strong, rotary tidal currents. During the day, demersal juveniles remain within a few centimeters of the bottom in the boundary layer where currents are somewhat reduced and where they maintain their position by swimming continually into the current. At night, regardless of the current, they rise off the bottom to feed on invertebrates in the near-bottom water column. Abundance estimates of demersal juveniles based on research bottom trawls show variability related to fish size and time of day. When compared with estimates of juvenile abundance based on submersible observations, the trawl data underestimate the numbers of juvenile fish present. We expect a knowledge of the diel behavior, geographic location, and most favorable habitat of demersal 0-group juveniles will aid in the assessment and management of the Georges Bank gadid population.