By means of a corrected split‐step parabolic‐equation numerical algorithm, acoustic propagation through an ocean region characterized by a sound‐speed distribution produced by an analytic model of an eddy is investigated. Parameter values for a moderate sized, cyclonic, Gulf Stream eddy are used. It is found that the presence of an eddy causes significant changes, both in nature and level, in the received acoustic field produced by an omnidirectional cw source. The eddy causes major changes in the arrival structure seen by a vertical array. The percentage of energy arriving at angles less than 5° from broadside increases from 5% to 50% in the presence of the eddy under consideration at 100 Hz. Greatly increased energy corresponding to horizontal arrival is noted. In addition, the effects of an eddy progressing through the region between an acoustic source and receiver is studied. The position of the eddy relative to the source causes changes in transmission loss of as much as 20 dB.