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Many decapod crustaceans in marine intertidal habitats release larvae toward coastal oceans, from which postlarvae (decapodids: settling‐stage larvae) return home. Decapodid settlement processes are poorly understood. Previous studies showed that in Kyushu, Japan, the callianassid shrimp population on an intertidal sandflat of an open bay joining the coastal ocean near a large estuary released eight batches of larvae basically in a semilunar cycle from June through October and that decapodids performed diel vertical migration, occurring in the water column nocturnally. We conducted (a) frequent sampling for population density and size‐composition on the sandflat through one reproductive season, (b) planktonic and benthic sampling for decapodids around the bay mouth, and (c) current meter deployment at three points across the bay mouth for tidal harmonic analysis. On the sandflat, six batches of newly‐settled decapodids (settlers) occurred in a semilunar periodicity until October, with peaks occurring 0–3 days before syzygy dates except for the first one. For larval Batches 1–4, buoyancy‐driven shoreward subsurface currents during July to mid‐October would transport some pre‐decapodid‐stage larvae (zoeae) toward the bay. The absence of expected settler Batches 7–8 would be due to the converse subsurface currents caused by water‐column mixing and seasonal winds after mid‐October, carrying zoeae offshore. Once in the bay, phasing of night and nighttime‐averaged shoreward tidal current explained the settlement pattern for Batches 1–4. For Batches 5–6 occurring in mid‐September to mid‐October, water currents generated by seasonal wind and tidal forcings may have caused peak settlement after the time expected from tidally‐driven decapodid transport. [ABSTRACT FROM AUTHOR]