Three‐component seismograms, recorded by a small array of digital instruments in the northern Mississippi embayment, consistently show a high‐amplitude phase on the vertical component that arrives approximately 0.8 s before the shear wave. On the basis of its timing and apparent velocity, this phase is identified as an S‐P conversion from the boundary between the unconsolidated Cenozoic sediments and the underlying Paleozoic rocks. Synthetic models of ground motion in the Mississippi embayment indicate that vertical displacement amplitudes are higher for S‐P conversions than for transmitted shear waves at all angles of incidence. The models and their agreement with observations of the three‐component seismograms suggest that true shear waves cannot be reliably identified from vertical component seismograms recorded in this area. The travel times of converted phases are used, together with crustal velocity models derived from a recent seismic refraction survey, to relocate approximately 500 microearthquakes recorded by the Central Mississippi Valley regional seismic network. Since the network data are recorded by vertical component seismographs, we assume that the S phases, observed at the stations sited on unconsolidated sediments, are S‐P conversions. This assumption significantly reduces the average rms residual and provides well‐constrained hypocentral locations for 350 earthquakes. The relocated microearthquakes cluster tightly along previously identified epicentral trends. Focal depths range from 0.5 to 22 km, but events deeper than 14 km are rare, and events shallower than 3 km are confined, almost exclusively, to the area between Ridgely, Tennessee, and New Madrid, Missouri. Focal mechanisms are generally consistent with the results of previous studies. The axial seismicity trend, which extends from Caruthersville, Missouri, to Marked Tree, Arkansas, is characterized by right‐lateral strike‐slip motion on a northeast trending, nearly vertical fault plane. The events between Ridgely, Tennessee, and New Madrid, Missouri, commonly show strike‐slip focal mechanisms, with minor components of both normal and reverse dip slip.