Microbial genome size can be used as a predictor to explain the ecology and metabolism of Bacteria and Archaea across major biomes. Despite their ecological significance, the contribution of microbial genome size to differences in metabolic potential of benthic and pelagic prokaryotes are poorly studied. Here, we investigated how taxonomy and microbial genome size varies between benthic and pelagic habitats across environmental gradients of the brackish Baltic Sea. We also explored the relationships between that variation, the environmental heterogeneity, and microbial functions in these habitats. By analyzing Baltic metagenomes and MAGs, we observe that pelagic brackish Bacteria and Archaea present smaller genome sizes on average than pelagic marine and freshwater prokaryotes. Moreover, we found that prokaryotic genome sizes in Baltic sediments (3.47 Mbp) are significantly bigger than in the water column (2.96 Mbp). These differences in genome size persisted in Bacteria from the phyla level to the order level. For pelagic prokaryotes, the smallest genomes coded for a higher number of module steps per Mbp than bigger genomes for most of the functions, such as amino acid metabolism and central carbohydrate metabolism. However, we observed that nitrogen metabolism was almost absent in pelagic genomes and was mostly present in benthic genomes. Finally, we also show that Bacteria inhabiting Baltic sediments and water column not only differ in taxonomy, but also in their metabolic potential, such as the Wood-Ljungdahl pathway or presence of different hydrogenases.IMPORTANCEIn Bacteria and Archaea, genome size is the result of strong selection pressures shaping the ecology and metabolism of microbial lineages. Thanks to the development of metagenomic analysis of environmental samples in the last three decades, we can now survey the size of their genomes, quantify their functional capabilities, and infer the role they play in the environment. Here, by using four publicly available datasets together with one new unpublished dataset, we provide new insights on how genome size, metabolism and taxonomy are linked and how they differ between sediments and water column in the Baltic Sea. Moreover, we investigate differences in genome size of pelagic microorganisms across ecosystems, from the brackish Baltic Sea to marine and freshwater Bacteria and Archaea. Our results provide a comprehensive and contrasting view between the taxonomic and genetic diversity of sediments and water column and its implications on nutrient cycling in the Baltic Sea.