IN RECENT YEARS, FREE ZONES AND ESPECIALLY INDUSTRIAL ACTIVITIES IN THE PERSIAN GULF BECOME VERY IMPORTANT. SUCH ACTIVITIES COULD RESULT IN IRREPARABLE DAMAGES IN REPRODUCTIVE AREAS AND BIOLOGICAL DIVERSITY. AMONG IRANIAN ISLANDS IN PERSIAN GULF, QESHM ISLAND - DUE TO ITS GEOGRAPHICAL LOCATION, SOCIAL AND COMMERCIAL PROPERTIES, ECONOMIC ACTIVITIES OF CITIZENS AND RESIDENTS, ITS POPULATION AND ALSO ITS PROXIMITY TO THE IMPORTANT PORTS OF BANDAR ABBAS, KHEMIR, KONG AND LENGE - BECAME A ZONE OR FREE PORT. SO, ANY INDUSTRIAL DEVELOPMENT IN QESHM ISLAND SHOULD BE DONE CONSIDERING ENVironMENTAL ISSUES. THE PURPOSE OF THIS STUDY IS EVALUATION OF CONTAMINATION IN COASTAL SEDIMENTS OF QESHM AND ITS ENVironMENTAL IMPACTS ON sponge iron plant IN QESHM. FOR THIS PURPOSE, FIRST, ALL THE CHEMICAL, PHYSICAL AND BIOLOGICAL CHARACTERISTICS OF THE REGION WERE EVALUATED. THEN, TO ASSESS THE POLLUTION LEVEL, SAMPLING WAS DONE ON COASTAL SEDIMENTS OF QESHM IN DEPTH OF 50 CM. AFTER PREPARING THE SEDIMENTS, PHYSICAL AND CHEMICAL TESTS WERE DONE ON THEM. BASED ON RESULTS OF THESE TWO EXPERIMENTS, CONCENTRATIONS OF HEAVY METALS AND THE AMOUNTS OF ORGANIC LOADS IN EACH SAMPLE WERE DETERMINED. COMPARING THESE CONCENTRATIONS WITH GLOBAL STANDARDS AND CONSIDERING THE OBTAINED DENDROGRAM OF THE CLUSTER ANALYSIS, IT CAN BE CONCLUDED THAT THE POLLUTION LEVEL IS LOW AT THE PRESENT TIME. FROM AN INDUSTRIAL POINT OF VIEW, SOUTHEASTERN PART OF ISLAND HAS LEAST DETRIMENTAL EFFECTS FOR THE ENVironMENT.