Benthic invertebrates play critical ecosystem roles including the breakdown of organic matter, sediment mixing, and nutrient cycling. In the lower Columbia River and estuary, benthic invertebrates provide a foraging resource for threatened and endangered juvenile salmon. Driven by the goal to create low velocity, shallow water, and riparian shrub habitats to benefit juvenile salmon, the USACE placed 237,000 CY of dredged material, resulting in the deposition of 13.5 acres of sand on the off-channel margins at Woodland Islands. The Pacific Northwest National Laboratory (PNNL) designed and implemented an action effectiveness research study to understand how dredged material placement at Woodland Islands affected sediment conditions and benthic invertebrate assemblages. A Before-After-Control-Impact, or BACI, study design was used to evaluate the response of environmental conditions and benthic invertebrates to dredged material placement. The design included one impact site and two control sites. Sampling occurred for two years prior to dredged material placement and two years after. Our study found that spatial variation was a significant factor for both environmental and biological response variables which suggests local conditions are important considerations for mechanisms affecting benthic assemblages. We found that off-channel habitats across all locations sampled were producing benthic invertebrates, many of which are common prey items for juvenile salmon and steelhead—e.g., insects, chironomids, crustaceans, and corophium. There was a significant BACI effect (i.e., an effect at the dredged material placement site, relative to conditions at the control sites) for concentration of carbon and ammonium in sediment, but not for phosphorous concentrations or for percent sand. The estimated abundance for the three invertebrate response variables—total abundance, total chironomid abundance, and total corophium abundance—was significantly lower at the impact site after dredged material placement, compared to the control sites. At Woodland Island, the estimated mean abundance for all invertebrates combined decreased 28% after dredged material placement. Estimated mean abundances of chironomid and corophium decreased by 8% and 88%, respectively. While invertebrate abundances were lower after dredged placement, the composition of benthic invertebrates was similar before and after placement suggesting that as the new habitat feature evolves recolonization will likely follow. These findings provide a foundation for understanding potential benefits and consequences of repurposing dredged material for habitat creation in the LCRE.