Carpet sea anemones of the genus Palythoa are common inhabitants of reef crest environments in the Florida Keys reef tract. Through a unique assimilation mechanism, Palythoa spp. entomb carbonate sediment within their tissues. The amount of sediment assimilated is significant, averaging almost 45% of wet tissue weight. Palythoa spp. assimilate all available minerals on the reef. Aragonite, magnesium calcite, calcite and minor quantities of siliciclastic components are all assimilated in proportions comparable to their content in adjacent sediment sinks. There is also no preference in terms of skeletal composition; coral grit, coralline red algae, Halimeda and other allochems are all equally assimilated into Palythoa spp. tissue. The only preference is particle size. Sediment extracted from tissue samples is generally ?125 μm in size, far finer than ambient sediment found adjacent to Palythoa spp. colonies (predominantly >500 μm). Much of the finest sediment extracted from Palythoa spp. tissue is composed of elongated crystal aggregates of aragonite. These particles appear to have been produced in situ through biologically influenced mineralization. Aggregates nucleated on exogenous sediment and attained their elongated form as assimilation proceeded. When Palythoa spp. colonies die, the assimilated sediment and the crystal aggregates are released back into the reef environment. The eventual fate of this material has yet to be determined.