Abstract Three-dimensional (3D) seismic data and well logs from the Penobscot area, located within the Scotian Basin offshore Nova Scotia, are used to assess the role of mass-transport deposits (MTDs) on fault propagation. Four MTDs characterized by chaotic seismic facies were mapped, with the earliest hosted by the Late Cretaceous–Recent Dawson Canyon Formation and latest three hosted by the Banquereau Formation. Two types of faults were also mapped. R-faults are regional faults that cut across all the interpreted MTDs in the study area, while P-faults are polygonal faults that cut across MTDs 2 and 3 but tip out at the basal surfaces of MTDs 4 and 2. Representative seismic profiles and isochron maps of the MTDs and throw–depth (T–z) and throw–distance (T–x) plots allows us to distinguish the families and propagation history of the faults. Our results show that fault propagation is not affected by the presence or thickness variation of MTDs, and is also unaffected by lithological contrast in the Penobscot area of the Nova Scotian Shelf.