Abstract. This paper presents a methodological tool for dynamic reconstruction of the state of the ocean, based, as an example, on observations from the Multidisciplinary drifting Observatory for the Study of Arctic Climate (MOSAiC) experiment. The data used in this study were collected in the Amundsen Basin between October 2019 and January 2020. Analysing observational data to assess tracer field and upper-ocean dynamics is highly challenging when measurement platforms drift with the ice pack due to continuous drift speed and direction changes. We have equipped the new version of the coastal branch of the global Finite-volumE sea ice–Ocean Model (FESOM-C) with a nudging method. Model nudging was carried out assuming a quasi-steady state. Overall, the model can reproduce the lateral and vertical structure of the temperature, salinity, and density fields, which allows for projecting dynamically consistent features of these fields onto a regular grid. We identify two separate depth ranges of enhanced eddy kinetic energy located around two maxima in buoyancy frequency: the depth of the upper halocline and the depth of the warm (modified) Atlantic Water. Simulations reveal a notable decrease in surface layer salinity and density in the Amundsen Basin towards the north but no significant gradient from east to west. However, we find a mixed-layer deepening from east to west, with a 0.084 m km−1 gradient at 0.6 m km−1 standard deviation, compared to a weak deepening from south to north. The model resolves several stationary eddies in the warm Atlantic Water and provides insights into the associated dynamics. The model output can be used to further analyse the thermohaline structure and related dynamics associated with mesoscale and submesoscale processes in the central Arctic, such as estimates of heat fluxes or mass transport. The developed nudging method can be utilized to incorporate observational data from a diverse set of instruments and for further analysis of data from the MOSAiC expedition.