<SUBMISSION>
<ACCESSION-NUMBER>0001209191-05-046688
<TYPE>3
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050901
<FILING-DATE>20050909
<DATE-OF-FILING-DATE-CHANGE>20050909
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>BLUE NILE INC
<CIK>0001091171
<ASSIGNED-SIC>5944
<IRS-NUMBER>911963165
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>705 FIFTH AVE S
<STREET2>STE 900
<CITY>SEATTLE
<STATE>WA
<ZIP>98104
<PHONE>2063366700
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>705 FIFTH AVE S
<STREET2>STE 900
<CITY>SEATTLE
<STATE>WA
<ZIP>98104
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>INTERNET DIAMONDS INC
<DATE-CHANGED>20000131
</FORMER-COMPANY>
</ISSUER>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>GASTON DWIGHT
<CIK>0001287612
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>3
<ACT>34
<FILE-NUMBER>000-50763
<FILM-NUMBER>051078727
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>C/O BLUE NILE INC
<STREET2>705 FIFTH AVENUE S STE 900
<CITY>SEATTLE
<STATE>WA
<ZIP>98104
<PHONE>2063366700
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>705 FIFTH AVE S STE 900
<CITY>SEATTLE
<STATE>WA
<ZIP>98104
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>doc3.xml
<DESCRIPTION>FORM 3 SUBMISSION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-09-01</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001091171</issuerCik>
        <issuerName>BLUE NILE INC</issuerName>
        <issuerTradingSymbol>NILE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001287612</rptOwnerCik>
            <rptOwnerName>GASTON DWIGHT</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O BLUE NILE, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>705 FIFTH AVENUE S, STE 900</rptOwnerStreet2>
            <rptOwnerCity>SEATTLE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98104</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior VP</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>22800</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2691</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Wife</value>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.25</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2001-07-15</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-02-24</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1600</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>30.00</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2006-02-21</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2014-07-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>18000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.50</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2000-05-17</value>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <value>2009-06-25</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>22500</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.25</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2002-08-26</value>
                <footnoteId id="F4"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-02-24</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9600</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.25</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2003-08-26</value>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-10-14</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>4800</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>8.75</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2004-08-26</value>
                <footnoteId id="F6"/>
            </exerciseDate>
            <expirationDate>
                <value>2013-10-08</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>27200</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">25% of the option shares vest one year after July 15, 2000 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
        <footnote id="F2">25% of the option shares vest one year after February 21, 2005 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
        <footnote id="F3">25% of the option shares vest one year after May 17, 1999 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
        <footnote id="F4">25% of the option shares vest one year after August 26, 2001 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
        <footnote id="F5">25% of the option shares vest one year after August 26, 2002 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
        <footnote id="F6">25% of the option shares vest one year after August 26, 2003 and one-forty-eighth of the option shares vest in equal monthly installments over the following thirty-six months.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Dwight Gaston</signatureName>
        <signatureDate>2005-09-09</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24.3_100624
<SEQUENCE>2
<FILENAME>poa.txt
<DESCRIPTION>POA DOCUMENT
<TEXT>
 POWER OF ATTORNEY

Know all by these presents, that the undersigned
hereby constitutes and appoints each of Mark Vadon, Diane Irvine and Lauren
Neiswender, signing individually, the undersigneds true and lawful
attorneys-in fact and agents to:

(1) execute for and on behalf of
the undersigned, an officer, director or holder of 10% of more of a
registered class of securities of Blue Nile, Inc. (the "Company"), Forms 3,
4 and 5 in accordance with Section 16(a) of the Securities Exchange Act of
1934, as amended (the "Exchange Act") and the rules thereunder;

(2)
do and perform any and all acts for and on behalf of the undersigned that
may be necessary or desirable to complete and execute such Form 3, 4 or 5,
complete and execute any amendment or amendments thereto, and timely file
such forms or amendments with the United States Securities and Exchange
Commission and any stock exchange or similar authority; and

(3) take
any other action of any nature whatsoever in connection with the foregoing
which, in the opinion of such attorney-in-fact, may be of benefit, in the
best interest of, or legally required by, the undersigned, it being
understood that the documents executed by such attorney-in-fact on behalf
of the undersigned pursuant to this Power of Attorney shall be in such form
and shall contain such terms and conditions as such attorney-in-fact may
approve in such attorney-in-facts discretion.

The undersigned hereby
grants to each such attorney-in-fact full power and authority to do and
perform any and every act and thing whatsoever requisite, necessary, or
proper to be done in the exercise of any of the rights and powers herein
granted, as fully to all intents and purposes as the undersigned might or
could do if personally present, with full power of substitution or
revocation, hereby ratifying and confirming all that such attorney-in-fact,
or such attorney-in-facts substitute or substitutes, shall lawfully do or
cause to be done by virtue of this power of attorney and the rights and
powers herein granted.  The undersigned acknowledges that the foregoing
attorneys-in-fact, in serving in such capacity at the request of the
undersigned, are not assuming, nor is the Company assuming, any of the
undersigneds responsibilities to comply with Section 16 of the Exchange
Act.

This Power of Attorney shall remain in full force and effect
until the earliest to occur of (a) the undersigned is no longer required to
file Forms 3, 4 and 5 with respect to the undersigneds holdings of and
transactions in securities issued by the Company, (b) revocation by the
undersigned in a signed writing delivered to the foregoing attorneys-in
fact or (c) as to any attorney-in-fact individually, until such
attorney-in-fact shall no longer be employed by the Company.

IN
WITNESS WHEREOF, the undersigned has cause this Power of Attorney to be
executed as of this 8th day of September, 2005.

Yours truly,


/s/ Dwight Gaston

Dwight Gaston


AUTHORIZATION LETTER


September 8, 2005

Securities and Exchange Commission
100 F Street,
N.E.
Washington, D.C. 20549
Attn: Filing Desk

To Whom It May
Concern:

By means of this letter I authorize Mark Vadon, Diane Irvine
and Lauren Neiswender or any of them individually, to sign on my behalf all
forms required under Section 16(a) of the Securities Exchange Act of 1934,
as amended, relating to transactions involving the stock or derivative
securities of Blue Nile, Inc. Any of these individuals is accordingly
authorized to sign any Form 3, Form 4, Form 5 or amendment thereto which I
am required to file with the same effect as if I had signed them myself.


This authorization shall remain in effect until revoked in writing by me.


Yours truly,

/s/ Dwight Gaston

Dwight Gaston
</TEXT>
</DOCUMENT>
</SUBMISSION>
