Estuaries can be considered as vital natural resources and are unique ecosystems at the interface between terrestrial and marine environments. The increase of population density centred on these coastal features and associated anthropogenic activities such as trade, industry, agriculture and recreation can adversely affect these sensitive environments. The Pumicestone Passage, located in northern Moreton Bay, Australia, is one such estuarine environment where there are concerns about degradation of water quality resulting from rapid land use change. These changes are both immediate to the Passage and within its wider catchment. Of notable concern are the outbreaks of Lyngbya (a toxic blue-green algae) in the Passage itself and near its interface with Deception Bay to the south. Other factors of concern are increased suspended and dissolved loads, and maintenance of ecosystem integrity. In this study, numerical modelling, graphical methods and water surface elevation and current velocity parameter calculations are used to describe hydrological processes in the Pumicestone Passage. A hydrodynamic model is developed using the modelling software SMS and RMA2 as a foundation for future hydrodynamic and water quality modelling. In addition, observed data are used to interpret general hydrodynamic behaviour in the passage, and determine various parameters for use in model development and calibration. Tidal prediction is also discussed and used for model calibration. To support the modelling and for preliminary interpretation of hydrodynamic processes within the Passage, measurements were made in the field of (a) water surface elevation variation at 17 sites; (b) tidal current velocities in four of the tributary creeks and at the northern boundary; (c) volumetric flow rates at two cross-sections within the Passage; and (d) cross-sectional bathymetry at sites where tidal current velocities were measured in the creeks. In general, examination of the observational data reveals a number of important processes in the Pumicestone Passage. Almost all sites within Pumicestone Passage and its tributaries are flood dominant indicating that tidal storage and bottom friction effects are significant. Mesotidal ranges occur at sites close to the southern boundary of the passage, however, bottom friction greatly reduces the tidal response at the remaining sites which results in microtidal ranges. The influence of both the southern and northern tides can be seen in the deformation of tidal waveforms in the central passage. Extensive intertidal areas at and inside the northern inlet to the Passage markedly reduce tidal ranges in the northern estuary and its tributary creeks. Issues involved in hydrodynamic model development and performance are discussed. Overall, model results for the southern estuary have satisfactory correlation with observed data whereas model results for the northern estuary are less satisfactory. In addition, water surface elevation variation model results are generally more accurate than tidal current velocity model results. Reasons for the differences between model and observed values are considered and possible solutions given. Factors discussed relate to boundary condition locations, resolution of bathymetric and geographical data, mesh development methods and parameter assignment.