Sediments are the particulate matter that are transported by the flow of water and eventually get deposited at the bottom of water bodies, such as oceans, rivers, lagoons, and so forth. The deposition of these materials due to continued intervention of natural as well as anthropogenic activities is a serious concern as the storage capacity (or health) of the system is reduced or otherwise affected. Keeping in view the emerging challenges associated with proper disposal and subsequent utilization of sediments, as a manmade resource, their extraction from such locations becomes necessary. Hence, it is essential to characterize the sediments in order to devise strategies to exploit them as a manmade resource in the best possible manner. With this in view, this article highlights the importance of different attributes and aspects of the sediments (viz., physical, chemical, morphological, geotechnical, toxicological, and microbial characteristics) deposited in the water bodies that will help in assessing their potential as a substitute material to natural resources.