Polycyclic aromatic hydrocarbons (PAHs) in sediment from urban shallow lake Bubanj (Serbia) were investigated in terms of their concentration, distribution, and potential effects on the environment and human health. The concentration of 16 PAHs (ΣPAHs) ranged from 24.4 to 107 ng/g dw. Low-molecular-weight PAHs (2- and 3-aromatic rings) were dominant, accounting for 71% of the total. Multivariate statistical analyses revealed that the main source of PAHs was the incomplete combustion of organic sources. Diagnostic ratios and positive matrix factorization (PMF) methods further indicated that combustion of organic matter and petroleum leakage were the dominant sources. The toxic equivalent quantity (TEQ) of ΣPAHs varied from 0.5 to 17.6 ng-TEQ/g-dry. BaP had the highest contribution to TEQ, followed by Ant, DahA, and BaA, with respective shares of 74.3%, 6.4%, 5.6%, and 5.3%. Dermal contact and ingestion were the primary exposure routes for PAHs, whereas inhalation posed negligible cancer risk. The incremental lifetime cancer risk (ILCR) values for adults were in the range of 3.9 × 10