Abstract We investigate the impact of 1/8°, 1/16°, 1/32°, and 1/64° ocean model resolution on model–data comparisons for the Gulf Stream system mainly between the Florida Straits and the Grand Banks. This includes mean flow and variability, the Gulf Stream pathway, the associated nonlinear recirculation gyres, the large-scale C-shape of the subtropical gyre and the abyssal circulation. A nonlinear isopycnal, free surface model covering the Atlantic from 9°N to 47°N or 51°N, including the Caribbean and Gulf of Mexico, and a similar 1/16° global model are used. The models are forced by winds and by a global thermohaline component via ports in the model boundaries. When calculated using realistic wind forcing and Atlantic model boundaries, linear simulations with Munk western boundary layers and a Sverdrup interior show two unrealistic mean Gulf Stream pathways between Cape Hatteras and the Grand Banks, one proceeding due east from Cape Hatteras and a second one continuing northward along the western boundary until forced eastward by the regional northern boundary. The northern pathway is augmented when a linear version of the upper ocean global thermohaline contribution to the Gulf Stream is added as a Munk western boundary layer. A major change is required to obtain a realistic pathway in nonlinear models. Resolution of 1/8° is eddy-resolving but mainly gives a wiggly version of the linear model Gulf Stream pathway and weak abyssal flows except for the deep western boundary current (DWBC) forced by ports in the model boundaries. All of the higher resolution simulations show major improvement over the linear and 1/8° nonlinear simulations. Additional major improvement is seen with the increase from 1/16° to 1/32° resolution and modest improvement with a further increase to 1/64°. The improvements include (1) realistic separation of the Gulf Stream from the coast at Cape Hatteras and a realistic Gulf Stream pathway between Cape Hatteras and the Grand Banks based on comparisons with Gulf Stream pathways from satellite IR and from GEOSAT and TOPEX/Poseidon altimetry (but 1/32° resolution was required for robust results), (2) realistic eastern and western nonlinear recirculation gyres (which contribute to the large-scale C-shape of the subtropical gyre) based on comparisons with mean surface dynamic height from the generalized digital environmental model (GDEM) oceanic climatology and from the pattern and amplitude of sea surface height (SSH) variability surrounding the eastern gyre as seen in TOPEX/Poseidon altimetry, (3) realistic upper ocean and DWBC transports based on several types of measurements, (4) patterns and amplitude of SSH variability which are generally realistic compared to TOPEX/Poseidon altimetry, but which vary from simulation to simulation for specific features and which are most realistic overall in the 1/64° simulation, (5) a basin wide explosion in the number and strength of mesoscale eddies (with warm core rings (WCRs) north of the Gulf Stream, the regional eddy features best observed by satellite IR), (6) realistic statistics for WCRs north of the Gulf Stream based on comparison to IR analyses (low at 1/16° resolution and most realistic at 1/64° resolution for mean population and rings generated/year; realistic ring diameters at all resolutions), and (7) realistic patterns and amplitude of abyssal eddy kinetic energy (EKE) in comparison to historical measurements from current meters.