Seagrass meadows are effective carbon sinks due to high primary production and sequestration in sediments. However, methane (CH4) emissions can partially counteract their carbon sink capacity. Here, we measured diffusive sediment-water and sea-air CO2 and CH4 fluxes in a coastal embayment dominated by Posidonia oceanica in the Mediterranean Sea. High-resolution timeseries observations revealed large spatial and temporal variability in CH4 concentrations (2-36 nM). Lower sea-air CH4 emissions were observed in an area with dense seagrass meadows compared to patchy seagrass. A 6%-40% decrease of CH4 concentration in the surface water around noon indicates that photosynthesis likely limits CH4 fluxes. Sediments were the major CH4 source as implied from radon (a natural porewater tracer) observations and evidence for methanogenesis in deeper sediments. CH4 sediment-water fluxes (0.1 +/- 0.1-0.4 +/- 0.1 mu mol m(-2) d(-1)) were higher than average sea-air CH4 emissions (0.12 +/- 0.10 mu mol m(-2) d(-1)), suggesting that dilution and CH4 oxidation in the water column could reduce net CH4 fluxes into the atmosphere. Overall, relatively low sea-air CH4 fluxes likely represent the net emissions from subtidal seagrass habitat not influenced by allochthonous CH4 sources. The local CH4 emissions in P. oceanica can offset less than 1% of the carbon burial in sediments (142 +/- 69 g CO2eq m(-2) yr(-1)). Combining our results with earlier observations in other seagrass meadows worldwide reveals that global CH4 emissions only offset a small fraction (<2%) of carbon sequestration in sediments from seagrass meadows. Plain Language Summary Seagrass meadows are hotspots for marine carbon storage in sediments. Part of the sediment carbon can be released as carbon dioxide and methane (CH4). Methane has 45-96 times more powerful global warming effect than carbon dioxide. If seagrass meadows release CH4, the emissions counteract their climate mitigation potential. We measured greenhouse gas concentrations and fluxes in a seagrass-dominated Mediterranean embayment. Low CH4 coincided with oxygen produced from seagrass photosynthesis. Areas with dense seagrass meadows had lower CH4 emissions. Overall, seagrass-dominated coasts were a small source of CH4 that offset only <2% of carbon buried in sediments on local and global scales. Hence, seagrass meadows remain an effective carbon sink.