Full details of nominees can be found at the SWFA 1989 Nebula Awards page.
Geoffrey A Landis Ripples in the Dirac Sea
Winner Best Short Story
Gardner Dozois Solace
Lois McMaster Bujold The Mountains of Mourning
Winner Best Novella
Mike Resnick For I Have Touched The Sky
Orson Scott Card Vulgar Art
Michael Bishop The Ommadtidium Miniatures
Connie Willis At the Rialto
Winner Best Novelette
Richard Grant The Exile’s Paradigm
John Crowley In Blue