Shewanella sp. YQH10 isolated from mangrove sediment, was a novel species of Shewanella, which has the ability to degrade acetaldehyde. Here, we present an annotated draft genome sequence of Shewanella sp. YQH10, which contains 4,215,794 bp with a G + C content of 48.1%. This information regarding the genetic basis of this bacterium can greatly advance our understanding of the physiology of this species.