The development and breakdown of Kelvin–Helmholtz (KH) waves (billows) in the stable atmospheric boundary layer (SABL) and their impact on vertical transport of momentum and scalars have been examined utilizing large eddy simulations. These simulations are initialized with a vertically uniform geostrophic wind and a constant potential temperature lapse rate. An Ekman type of boundary layer develops, and an inflection point forms in the SABL, which triggers the KH instability (KHI). KHI develops with the kinetic energy (KE) in the KH billows growing exponentially with time. The subsequent onset of secondary shear instability along S-shaped braids leads to the turbulent breakdown of the KH billow cores and braids. The frictional ground surface tends to slow down the growth of KE near the surface, reduce the KH billow core depth, and likely suppress other types of secondary instability. KH billows induce substantial down-gradient transport of momentum and sensible heat, which can be further enhanced by the onset of secondary shear instability. Although the KHI-induced strong transport only lasts for around 10–20 min, it reduces vertical shear and stratification in the SABL, enhances surface winds, and results in a 2–3-fold increase in the SABL depth.