Coastal sea surface temperature (CSST) and meteorological data from January through December 1995 are used to estimate the net surface heat flux and heat content for Sendai Bay. The average annual surface heat flux in the area north of the bay is estimated to be $+35Wm^{-2}$, whereas the southwestern area is estimated to be $+56Wm^{-2}$. Therefore, the net surface heat flux shows a net gain of heat over the whole bay. The largest heat gain occurs near Matsukawaura, where the strong Kuroshio/Oyashio interaction produces anomalously cold SST and wind is more moderate than in other regions of Sendai Bay over most of the year. The lowest heat gain occurs around Tashiro Island, where the temperature difference between air and sea surface is lower and wind is stronger. The heat budget shows that both surface forcing and horizontal advection are potentially important contributors to the seasonal evolution of CSST in the bay. From the A VHRR and SeaWiFS data, it is found that offshore conditions between the bay and Eno Island are different due to the presence of the Ojika Peninsula. It is also shown that the temporal behaviors of SSTs in the bay are closely connected with the air-sea heat flux and offshore conditions.