Increasing oil development around Alaska and other Arctic regions elevates the risk for another oil spill. Dispersants are used to mitigate the impact of an oil spill by accelerating natural degradation processes, but the reduced hydrophobicity of dispersed oil may increase its bioavailability to marine organisms. There is limited research on the effect of dispersed oil on cold water species and ecosystems. Therefore, spiked exposure tests were conducted with bay mussels (Mytilus trossulus) in seawater with non-dispersed oil, Corexit 9500 and oil dispersed with different concentrations of Corexit 9500. After three weeks of exposure, acute and chronic physiological impacts were determined. The majority of physiological responses occurred during the first seven days of exposure, with mussels exhibiting significant cytochrome P450 activity, superoxide dismutase activity and heat shock protein levels. Mussels exposed to non-dispersed oil also experienced immune suppression, reduced transcription and higher levels of mortality. After 21?days, mussels in all treatments exhibited evidence of genetic damage, tissue loss and a continued stress response. Bay mussels are useful as indicators of ecosystem health and recovery, and this study was an important step in understanding how non-dispersed oil, dispersant and dispersed oil affect the physiology of this sentinel species in Arctic/subarctic conditions.