Gas and water permeability through hydrate-bearing sediments essentially governs the economic feasibility of gas production from gas hydrate deposits. Characterizing a reservoir’s permeability can be difficult because even collocated permeability measurements can vary by 4-5 orders of magnitude, due partly to differences between how various testing methods inherently measure permeability in different directions and at different scales. This study uses a customized flow anisotropy cell to investigate geomechanical and hydrological properties of hydrate-bearing sediments focusing on permeability anisotropy (i.e., horizontal, kh, to vertical, kv, permeability ratio) and relative permeability. Two cores recovered during India’s National Gas Hydrate Program Expedition 02 (NGHP-02) are tested in this study. Near in situ effective vertical stress, ~ 2MPa, the permeability anisotropy is approximately kh/kv = 1.86 for the “seal core” (from a fine-grained non-reservoir overburden sedimentary section) and kh/kv = 4.24 for the gas hydrate reservoir score with tetrahydrofuran (THF) hydrate saturation Sh = 0.8. Permeability anisotropy increases exponentially with effective vertical stress, as described by kh/kv = α(σv/MPa)^β, with α = 1.6, β = 0.22 for seal sediment and α = 3, β = 0.5 for THF hydrate-bearing sediment. Results imply the measured permeability from permeameter tests with vertical flow may underestimate the reservoir’s flow performance, which is mainly horizontal (radial) toward a vertical well. Hydrates in sediment increase the gas-entry pressure and residual water saturation, but decrease the water retention curve’s shape factor (m), resulting in a steeper curve. Distributions of available pore space sizes for flow in sediment with and without THF hydrate (Sh = 0.8) follow a log-normal distribution. Hydrate formation decreases the apparent mean pore size from ~10 µm to ~2 µm, without evidently changing the pore size distribution's standard deviation. Gas hydrate dissociation increases effective permeability and relative permeability to gas.