Shrimp is one of the major export products in South Asian countries and also an eminent source of nutrition for humans. Hence, any negative effect of this industry may affect not only the country’s economy but also human health. Therefore, in this study, we aimed to assess heavy metal contamination and associated human health risks in cultured shrimp (Penaeus monodon) and aquaculture sludge collected from three shrimp farms of the Cox’s Bazar district, Bangladesh. The results showed that among the eight metals studied, Pb (17.75 ± 1.5 mg/kg) and Cu (9.43 ± 2.8 mg/kg) levels in all shrimp samples were higher than the recommended limit, whereas the concentrations of Cd (0.09 ± 0.03 mg/kg), Mn (4.83 ± 2.2 mg/kg), As (0.04 ± 0.02 mg/kg), Hg (0.02 ± 0.006 mg/kg), Zn (18.89 ± 2.9 mg/kg) and Cr (0.69 ± 0.6 mg/kg) were within the permissible level. The concentrations of Mn (1043.37 ± 59.8 mg/kg), Cr (30.38 ± 2.1 mg/kg), Zn (74.72 ± 1.13 mg/kg) and Cu (31.14 ± 1.4 mg/kg) in the sludge of all farms were higher than the recommended limit, whereas the concentrations of Pb (20.23 ± 1.9 mg/kg), Cd (0.09 ± 0.2 mg/kg), As (0.44 ± 0.34 mg/kg) and Hg (0.08 ± 0.02 mg/kg) in all sludge samples were lower than the threshold limits. However, the estimated daily intake (EDI), targeted hazard quotient (THQ) and hazard index (HI) assessed for potential human health risk implications suggested that Pb and Cr may pose non-carcinogenic health effects, although carcinogenic risks (CR) values were acceptable for consumers. However, the pollution load index (PLI) of the studied area was below 1, which indicates low deterioration of the area. Geoaccumulation index (Igeo) and contamination factor (CF) analyses revealed that study area is unpolluted and sludge is enriched with metals in the following order: Mn > Zn > Cu > Cr > Cd > Hg > Pb > As.