Details of nominees can be found on the SFWA 1985 Nebula Awards page.
Howard Waldrop Heirs of the Perisphere
Nancy Kress Out of All Them Bright Stars
Winner Best Short Story
Orson Scott Card The Fringe
Robert Silverberg Sailing to Byzantium
Winner Best Novella
Joe Haldeman More Than the Sum of His Parts
George R R Martin Portraits of His Children
Winner Best Novelette
James P Blaylock Paper Dragons