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Abstract Sediment thermal history controls the progress of diagenetic reactions that can alter the mechanical behavior of material entering a subduction zone that then: accretes to the margin, hosts the plate boundary interface, or is carried deeper within the Earth. On the Cascadia margin offshore Oregon (USA), hydrothermal circulation in the oceanic crust affects thermally controlled processes, enhancing sediment alteration above the MARGIN seamount, which is buried by the Astoria Fan. Hydrothermal circulation increases temperatures at the summit of the seamount and in the overlying sediment by up to ∼100°C. We use sediment thermal history constrained by heat flux observations to model the expected progress of the smectite‐to‐illite reaction around the MARGIN seamount. Above the seamount, the smectite‐to‐illite reaction is expected to progress to completion ∼250 m below the seafloor; away from the seamount, smectite is likely unaltered to a burial depth of ∼800 m. The altered sediment above the seamount has higher rigidity and p‐wave velocity than the surrounding sediment. Spatial variability in sediment alteration may be present around other buried seamounts. We use vertical gravity gradient anomalies to estimate the locations and heights of additional seamounts. Each of these seamounts may have altered sediment around it, which could affect deformation and seismicity in the margin wedge. Because cemented sediment with greater elastic strength is better able to store elastic strain energy, enhanced sediment alteration and cementation above seamounts entering the subduction zone could facilitate earthquake nucleation for material in the margin wedge that was above a seamount prior to subduction.