Suspended sediment transport in the Gulf of Kachchh is simulated utilizing the suspended sediment concentration (SSC) derived from Oceansat OCM imagery, as the initial condition in MIKE-21 Mud Transport model. Optimization of the model mud parameters, like settling velocity and critical shear stress for erosion are realized with respect to the sediment size distribution and the bottom bed materials observed in the Gulf. Simulated SSCs are compared with alternate OCM derived SSC. The results are observed to be impetus where the model is able to generate the spatial dynamics of the sediment concentrations. Sediment dynamics like deposition, erosion and dispersion are explained with the simulated tidal currents and OCM derived sediment concentrations. Tidal range is observed as the important physical factor controlling the deposition and resuspension of sediments within the Gulf. From the simulation studies; maximum residual current velocities, tidal fronts and high turbulent zones are found to characterise the islands and shoals within the Gulf, which results in high sediment concentrations in those regions. Remarkable variability in the bathymetry of the Gulf, different bed materials and varying tidal conditions induces several circulation patterns and turbulence creating the unique suspended sediment concentration pattern in the Gulf.