Soil and water quality determines the health of an aquatic ecosystem. Rajakhali Canal, a tributary of Karnaphuli River estuary, flowing through Chittagong City (the commercial capital of Bangladesh) receives a huge amount of domestic and industrial wastes and sewages. Monitoring the environmental status of Karnaphuli River and its tributaries is very important for their ecological and economical services provided to city areas. This study evaluated some environmental characteristics of water and soil in the Rajakhali Canal as it affected the environment, and ultimately the life and human beings of Chittagong City. The mean concentrations of physicochemical parameters were pH (8.5), DO (0.1 mg/L), TA (47.6 mg/L), TDS (631.8 mg/L), TSS (280 mg/L), SO 4 -S (2.3 mg/L), NH 3 (1.1 mg/L), NO 3 -N (0.2 mg/L) and PO 4 -P (0.1 mg/L) in the dry season. During the rainy season, the mean concentrations of physico-chemical parameters were pH (7.01), DO (0.55 mg/L), TA (65.9 mg/L), TDS (653.6 mg/L), TSS (300.3 mg/L), SO 4 -S (1 mg/L), NH 3 -(0.6 mg/L), (NO 3 -N (0.3 mg/L) and PO 4 -P (0.5 mg/L) in water.In case of soil, the mean concentration of physicochemical parameters in dry and rainy seasons was represented respectively as follows: pH (6.8), OM (4.5 %), sand (71.7 %), silt (3.1 %), clay (25.2 %), organic nitrogen (45.4 ppm) and phosphorus (9.6 ppm); and pH (6.7), OM (4.5 %), sand (74.4 %), silt (2.4 %), clay (23.2 %), organic nitrogen (35.3 ppm) and phosphorus (7.6 ppm). The result revealed that water and soil quality of this canal became deteriorated and that the total environment of the water body became polluted due to the anthropogenic activities such as industrial, domestic and irrigation effluents. Statistical analyses also supported that water and soil parameters were strongly correlated (1-tailed 0.05 level and 0.01 level significant) with each other at all stations during all seasons. The result of this study will be useful for management and planning for water quality monitoring in this estuary. To protect this vital estuarine region, the government agencies, private agencies and scientists should work with proper attention.