The fifth-generation Pennsylvania State University–NCAR Mesoscale Model (MM5) is applied to the Gulf of Maine/Georges Bank (GoM/GB) region. This model is configured with two numerical domains with horizontal resolutions of 30 and 10 km, respectively, and driven by the NCAR-Eta weather model through a nested grid approach. Comparison of model-computed winds, wind stress, and heat flux with in situ data collected on moored meteorological buoys in the western GoM and over GB in 1995 shows that during the passage of atmospheric fronts over this region, MM5 provides a reasonable prediction of wind speed but not wind direction, and provides a relatively accurate estimation of longwave radiation but overestimates sensible and latent fluxes. The nudging data assimilation approach with inclusion of in situ wind data significantly improves the accuracy of the predicted wind speed and direction. Incorporation of the Fairall et al. air–sea flux algorithms with inclusion of Advanced Very High Resolution Radiometer (AVHRR)-derived SST improves the accuracy of the predicted latent and sensible heat fluxes in the GoM/GB region for both stable and unstable weather conditions.