Nursery habitats provide elevated survival and growth to the organisms that associate with them, and as such are a crucial early life-stage component for many fishes and invertebrates. The exact mechanisms by which these benefits are afforded to associated organisms, however, are often unclear. Here we assessed potential explanations of the nursery function of structurally complex habitats for post-settlement snapper, Chrysophrys auratus, in New Zealand. Specifically, we deployed Artificial Seagrass Units (ASUs) and used a combination of video observation, netting and diet analysis of associated post-settlement snapper as well describing potential prey within the micro-habitats surrounding ASUs. We did not observe any predation attempts and few potential predators, suggesting that for snapper the nursery value of structurally complex habitats is not as a predation refuge. The diet of post-settlement snapper mostly consisted of calanoid and cyclopoid copepods, which were most commonly sampled from within the water column. Nearly all suspected feeding events were also observed within the water column. When considering the velocity of water flow at each ASU, plankton sampling revealed a greater availability of copepods with increasing current strength, while netting and video observation demonstrated that the abundance of snapper was highest at sites with intermediate water velocity. This study highlights that the interaction between water flow and food availability may represent an important trade-off between energy expenditure and food intake for post-settlement snapper. Structurally complex habitats may mediate this relationship, allowing snapper to access sites with higher food availability while reducing swimming costs. This mechanism may have broader relevance, potentially explaining the importance of estuarine nursery habitats for other species.