AbstractThis paper deals with the numerical solution, using finite difference methods, of the hydrodynamic and turbulence energy equations which describe wind wave and tidally induced flow.Calculations are performed using staggered and non‐staggered finite difference grids in the vertical, with various time discretizations of the production and dissipation terms in the turbulence energy equations. It is shown that the time discretization of these terms can significantly influence the stability of the solution. The effect of time filtering on the numerical stability of the solution is also considered. The form of the mixing length is shown to significantly influence the bed stress in wind wave problems.A no‐slip condition is applied at the sea bed, and the associated high‐shear bottom boundary layer is resolved by transforming the equations onto a logarithmic or log‐linear co‐ordinate system before applying the finite difference scheme.A computationally economic method is developed which remains stable even when a very fine vertical grid (over 200 points) is used with a time step of up