Global plastic production is on the rise, and improper plastic management leads to the disposal of plastic in the environment, wherein it enters the environment, after degradation, as microplastics (size < 5 mm) and nanoplastics (size < 1 μm). The most common sink for the microplastics is the marine environment, including the sediment, deep sea, shorelines, and oceans. The objective of this study is to collate the environmental impact assessment of the microplastics in the marine habitat, focusing on the following main elements: (a) source and type of microplastics, specifically leading to the marine sink; (b) degradation pathways; (c) ecotoxicological impact on marine biota, since the smaller-sized microplastics can be digested by the marine biota and cause threats to them; (d) fate of microplastic in the marine environment, including the modes of transport and deposition. This chapter aims to provide a deeper insight into the fate of microplastics once it enters the marine environment, and the information could be a useful reference for the development of microplastic risk management strategies.