Embayments are among the most widespread littoral habitats found in Mississippi flood-control reservoirs. These macrohabitats represent commonly used nursery zones for age-0 crappies, Pomoxis spp., despite barren and eroded shorelines formed over 60–70 years of annual water level fluctuations. We tested if embayments displayed microhabitat gradients linked to the effect of water level fluctuations on riparian vegetation and if these gradients were paralleled by gradients in age-0 crappie distribution. Habitat composition changed longitudinally along the embayments with the most pronounced gradient representing a shift from nonvegetated mudflats near the mouth of embayments to herbaceous material upstream. The degree of habitat change depended on the water level. Similarly, catch rates of crappies increased upstream toward the rear of embayments, differing among water levels and reservoirs, but the longitudinal pattern persisted. Our results indicate that habitat composition gradients occur in embayments of northwest Mississippi flood-control reservoirs and that these gradients may influence a similar gradient in age-0 crappie distribution. While the biotic interactions behind the gradients may be less clear, we speculate that water level is the main factor influencing the observed gradients in habitat composition and fish. Management to benefit age-0 crappies may involve habitat improvement along embayment shorelines and water level regimes that foster growth of herbaceous plants.