Biomass, species composition, diversity, and community structure of demersal fishes were studied during the spring of 1978 in the sponge-coral habitat of the South Atlantic Bight. These results were compared with sampling at an open-shelf site. Otter trawl catch rates were an order of magnitude higher in the sponge-coral habitat than at the open-shelf site. Density and biomass estimates in the sponge-coral habitat averaged 384 individuals/ha and 31.0 kg/ha, respectively, whereas at the open-shelf site they averaged 57 individuals/ha and 3.2 kg/ha. In sponge-coral habitat samples, 101 species of demersal teleosts were taken. The Sparidae accounted for the greatest number of species (9), as well as 59% of the total number and 48% of the weight of demersal teleosts. Species diversity was highest in night-trawl tows in the sponge-coral habitat. Species associations, described by numerical classification, showed major differences in faunal assemblages between reef and open-shelf sites and between day and night samples.