A study on antibiotic resistance of heterotrophic bacteria and physicochemical characteristics of water and sediment in mangrove environment of Muthupettai, Southeast coast of India was carried out during April 2006 -March 2007. Six stations in and around the mangrove sites were selected for sampling and the following parameters were recorded at monthly intervals temperature, pH, salinity, dissolved oxygen, nitrite, nitrate, total nitrogen, inorganic phosphate, total phosphorus, ammonia, silicate and total organic carbon. The levels of resistance of bacterial to various antibiotics differed considerably. Antibiotic resistance heterotrophic bacteria strains (six hundred and eighty) were isolated from mangrove environment and identified. Bacteria which inhabiting an aquaculture pond area of the mangrove and the station 2 were most resistant; the least resistant bacteria were isolated from the station 6, i.e., open sea. Generally, there was no significant difference in antibiotic resistance between pigmented and non-pigmented bacteria. When compared to nutrient distribution, water nutrients were consistently higher in the mangrove environment. Partially treated aquaculture waste water is having additional sources of nutrients. Although, the mangrove habitat has been demonstrated to possess self-cleaning properties, data obtained warms possible anthropogenic pollution in the mangrove area in near future if the present conditions prevailed for a long period.