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Colocation of farmed shellfish in seagrass, although not permitted in some regions of the USA, has been proposed as a means to reach cobenefits of habitat and food production. Seagrass could benefit bivalves through protection from predation or abiotic stressors but conversely can reduce water flow and food delivery. At 10 farm sites in Washington state (USA), we tested the performance of Pacific oysters (Magallana (Crassostrea) gigas) grown in ground culture or off-bottom culture across a range of seagrass densities. Oysters averaged 32 m−2 and 30% shell cover on ground culture beds. Oysters in off-bottom culture showed a negative relationship between size and density across beds, consistent with growth and mortality through the crop cycle, and the largest oysters were at densities similar to ground culture. Within each farm site, ground and off-bottom beds were selected with each of three categories of seagrass (none, sparse, dense). Dense seagrass on aquaculture beds was half the density of nearby unfarmed seagrass beds. For outplanted oysters over 3–9 months, many aspects of oyster performance improved when oysters were elevated above the sediment. Relative to ground culture, off-bottom oysters had better survival (85% vs. 69%), 7% larger size, and 48% higher condition after 3 months in summer, and the survival advantages persisted over winter. Oyster survival on-bottom was especially impaired in finer sediment. No oyster performance differences were associated with seagrass, except for 9-month results, available for five of 10 farms. After 9 months at these five farms, oyster survival showed a small negative effect of dense seagrass, and shell size showed a small positive effect of sparse seagrass. Consequently, seagrass may not provide a boost to colocated intertidal shellfish, but we found little evidence of trade-offs in which maintaining seagrass would reduce yield of farmed oysters. Moving oysters out of the boundary layer and away from soft sediment improves both survival and tissue growth aspects of yield. [ABSTRACT FROM AUTHOR]