In this study, we examine mercury bioaccumulation by a first-year sea-ice (FYI) algal community in the western Canadian Arctic during the spring of 2008. Total mercury concentration in bottom sea-ice particulate ([PHg]T) ranged 0.004–0.022 mg/g dw and was limited by the amount of mercury available for uptake when the spring bloom commenced. Mercury in ice algae originated from a combination of brine and seawater as sources, while atmospheric mercury depletion events did not appear to significantly contribute as a source in a coupled manner. We show that the bottom sea-ice brine presents a chemically and biologically unique niche from which inorganic Hg makes its way into the food web. Once incorporated into algae, mercury can be transported spatially and trophically within the ecosystem by a range of processes including grazing, resuspension, remineralization, and sedimentation. Ice algae contribute 10–60% of the annual primary production in the Arctic and are thought to become even more productive and abundant under a mild climate change scenario. Replacement of multiyear ice with FYI in the Beaufort Sea alone could result in an additional influx of 48 kg/yr of particle bound Hg. Further studies are thus warranted to elucidate mechanisms by which mercury transformation processes and transfer into the Arctic marine food web are impacted by the interaction between sea ice, brine, and seawater.