The northeastern United States once had a robust and profitable wild bay scallop Argopecten irradians commercial fishery that generated revenue for fishermen and quality seafood for regional consumption. Since the 1980s, bay scallop landings have been declining due to overfishing, habitat loss, and coastal water quality degradation. There is potential for bay scallop aquaculture to fill the void left by the decline of the wild fishery. However, further investigation into optimizing growth and survival in the nursery, grow‐out, and overwintering phases is needed. Growth and survival as related to stocking density were investigated during the nursery phase using a floating downweller system. Over the 6‐week nursery period, survival, growth, and food availability were documented in relation to flow rates and initial stocking densities. Initial bay scallop stocking density largely predicted mean bay scallop growth rates (mm/d) over the 6‐week observation period but had little impact on survival. At the end of the observation period, bay scallops were moved out of the nursery system to three different grow‐out locations on Cape Cod. At each location, bay scallops were stocked into three surface gear types (floating bags of two different mesh sizes [6 or 9 mm] or hanging trays) and bottom cages to investigate grow‐out phase strategies. In exposed, high‐energy environments, the surface gear was susceptible to damage, and bay scallop growth rates and survival were impacted. In low‐energy environments, growth rates and survival were similar between surface and bottom gear. In both low‐ and high‐energy environments, bay scallop growth rates (mm/d) declined significantly once temperatures dropped below 15°C. Observed growth rates and survival in the configurations examined in this study indicate that bay scallop farming on New England shellfish farms is viable.