Patch reefs and the grazing halos surrounding them have been described in various locations around the world. The visible halos were previously explained by herbivore grazing, but more complex patch reef–halo interactions were proposed recently, including but not limited to the mediation of surrounding sediment properties and benthic communities. To understand the degree to which nutrient enrichment on reefs translates to adjacent soft sediment habitats, we analysed sediment grain size characteristics, total organic carbon (TOC), total nitrogen (TN) and total phosphorous (TP) concentrations in transects of thirteen patch reefs in the One Tree Island lagoon, Australia. TOC and TN content showed strong significant decreases with distance from patch reefs, indicating limited nitrogen in sediments. Furthermore, sediments showed poorer sorting with higher mud and rubble content close to the reef, providing a more diverse habitat for infauna organisms. Multivariate analyses of sediment characteristics showed the strongest driver for halo strength and composition to be the relative location of the patch reef in the lagoon and the mean trophic level of the fish community inhabiting the reef. Both factors will likely change in future years with higher ocean temperatures and increased frequency of cyclones, directly impacting sediment communities.