Mercury (Hg) deposition and accumulation in the abiotic and biotic environments of a stream ecosystem were studied. This study aimed to link labile Hg in porewater to bioaccumulative Hg in biota. Sediment cores, porewaters, and biota were sampled from four sites along the Fourmile Branch (SC, USA) and measured for total Hg (THg) and methyl-Hg (MHg) concentrations. Water quality parameters were also measured at the sediment–water interface (SWI) to model the Hg speciation. In general, Hg concentrations in porewaters and bulk sediment were relatively high, and most of the sediment Hg was in the solid phase as non-labile species. Surface sediment presented higher Hg concentrations than the medium and bottom layers. Mercury methylation and MHg production in the sediment was primarily influenced by sulfate levels, since positive correlations were observed between sulfate and Hg in the porewaters. The majority of Hg species at the SWI were in non-labile form, and the dominant labile Hg species was complexed with dissolved organic carbon. MHg concentrations in the aquatic food web biomagnified with trophic levels (biofilm, invertebrates, and fish), increasing by 3.31 times per trophic level. Based on the derived data, a modified MHg magnification model was established to estimate the Hg bioaccumulation at any trophic level using Hg concentrations in the abiotic environment (i.e., porewater).