The Shetland Islands (UK) are a seminal location for investigating palaeo-tsunami deposits. Onshore evidence suggests three tsunami have occurred during the Holocene: the Storegga tsunami ca. 8150 cal yr BP, the Garth tsunami ca. 5500 cal yr BP and the Dury Voe tsunami ca. 1500 cal yr BP. However, little research has been published on the impact of tsunami on the subtidal shelf where a large amount of North Sea hydrocarbon infrastructure is located. Here, we test the hypothesis that Holocene tsunami impacted shelf sediments, using radiocarbon dating and sedimentological characterization of cores recovered from the Fetlar Basin, offshore east Shetland. The cores contain distinct sand and shell lenses within a Holocene mud sequence, indicating a sudden change in hydrodynamic conditions. Radiocarbon dates bracketing the sand lenses overlap with the published dates for the Storegga event. Dates within the deposit are older (>9 cal. yr BP) which is consistent with reworking and redeposition of earlier sediments. Particle size analysis, ITRAX and MSCL data evidence increases in mean grain size, a reduction in sorting capacity, increased shell concentrations and peaks in associated elements (log(Ca/Fe), log(Ca/Ti) and Sr). These attributes indicate transport of allochthonous material from the inner shelf, and are typical of tsunami backwash-generated submarine debris flows. No evidence was found within the cores for any later Holocene tsunami, which may be due to either bioturbation, active currents, or lack of an initial deposit. The disturbance of sediments, and generation of a submarine debris flow within the Fetlar Basin by the Storegga event highlights the need to assess the potential impact of any future tsunami on planned and existing infrastructure at seabed. Erosion and deposition of allochthonous older marine sediment by the Storegga event also has consequence for interpretation of the coeval 8.2 ka cold event in marine sedimentary records in the tsunami affected region.