The Wadden Sea and its associated barrier island system exhibit highly dynamic behaviour. Of major concern is the movement of water and air and the transport, erosion and deposition of sand and mud. These processes result in an ever-changing morphology (topography/bathymetry) of the islands, tidal channels, inter-tidal shoals and tidal flats. This dynamic development of the shape and nature of the Wadden area forms together with the biotic systems, the present Wadden system. The morphodynamic development of the Wadden Sea is influenced by changing environmental conditions e.g. sea-level rise as well as by human interferences. For the management and protection of the Wadden system knowledge on the morphodynamic development is essential. However, our present knowledge is not sufficient to predict the effects of human interferences under different climate change scenarios in sufficient detail and accuracy. This paper identifies the existing knowledge gaps, based on a review of the state of the art on morphodynamics of the Wadden Sea that is confronted with major requirements from a coastal zone management point of view. The identified knowledge gaps have to inspire and stimulate research in the fields of the large-scale sediment budgets, morphodynamic changes at smaller scales, processes and mechanisms of sediment transport, erosion and deposition and modelling tools.