Rapid sedimentation of phytoplankton cells following surface blooms is common in the Great Lakes, yet the fate of these cells is uncertain, particularly in Lake Erie, where hypoxia occurs seasonally. I sampled benthic stations seasonally inside and outside of the hypoxic area for differences in chlorophyll-a concentrations, physiological condition (cell viability), and rejuvenation rates (from enclosure experiments). During summer stratification I expected the oxygen rich areas to support lower chlorophyll-a concentrations, faster diatom rejuvenation rates, and superior physiological capabilities, compared to hypoxic environments. Hypoxic areas did sustain higher chlorophyll-a concentrations, but diatom growth and physiological capability did not differ significantly. Hypoxic areas exhibited exponential growth rates as high as 0.56 d-1 (compared to oxic station at 0.53 d-1) and physiological conditions as high as 0.30 µg L-1 d-1 (compared to oxic station at 0.36 µg L-1 d-1). Therefore, sedimentation of phytoplankton cells may not only contribute to the seasonal hypoxia observed in Lake Erie, but sedimentation may also contribute to the seeding of subsequent spring diatom blooms, for those diatoms able to withstand low oxygen concentrations.