High poststocking mortality of muskellunge (Esox masquinongy) has long been an important management problem. This paper documents poststocking dispersal and subsequent movement, habitat selection, behavior, and survival of fall stocked young‐of‐the‐year muskellunge (12.1–13.1 in total length) with the objective of providing insights into the mechanism controlling short‐term survival. Radio transmitters were surgically implanted into 27 muskellunge that were then stocked with untagged muskellunge into two northern Wisconsin lakes and monitored for 34 d. Most dispersal from stocking locations occurred within 2 weeks after stocking. Muskellunge selected inshore areas generally less than 10 ft deep. Emersed vegetation, particularly bulrushes Scirpus spp., submersed vegetation, and the trunks and branches of downed trees were preferred cover. The first day following stocking, muskellunge appeared stressed, failing to demonstrate an escape response when approached. Survival of both transmitter‐tagged and untagged muskellunge in these stockings was higher than in previous investigations; presumably this was related to the large size of fish at stocking. Results of this study should aid habitat management and the design of future studies of ways to minimize poststocking mortality of muskellunge.