Over the past decade, there has been a significant increase in low oxygen conditions within marine coastal areas, profoundly impacting ecosystem processes and living coastal resources. Coastal bays in highly productive upwelling regions, where hypoxia occurs naturally, are special areas affected by both local and adjacent shelf-related processes. Paracas Bay (13.8°S) is a traditional shellfish fishing and intense farming area highly influenced by one of the most active upwelling centers of the Peruvian coast. Despite the small dimensions of the bay (35 km2), a key feature is its complex physical dynamics and high environmental variability. Recently, important efforts have been made in the study of both the spatial and temporal oxygen concentration variability, nevertheless, information regarding the ecological and biological impact of hypoxic events is still lacking. In this study, the spatial and temporal distribution of hypoxic events was analyzed across Paracas bay at different depths by means of high-frequency hourly dissolved oxygen records collected by data-loggers deployed across the bay during the periods September 2012 – February 2013 and March 2015 – February 2017. To study the ecological impact of hypoxic events, we developed a hypoxia intensity index, while the biological impact was studied through the development of a hypoxia biological effect index using as model species the Peruvian scallop (Argopecten purpuratus). Our results showed that hypoxic events have an intrinsic variability across the bay. The deeper areas of the bay, towards the northwest and center, were characterized by long, intense, and lethal events, while the southeast and southwest, shallower areas, were characterized by shorter events of low intensity and either sublethal or innocuous. We propose that the observed variability is not only related to the large-scale environmental context in which the events occurred, but also to small-scale variability linked to local circulation, biological activity, and sediment biogeochemistry. We expect that our research will be useful not only for scientific purposes, but also for coastal resource management and aquaculture, underlining the importance of developing high-resolution oxygen monitoring systems in coastal bays.