AbstractWe examine nonlinear geostrophic adjustment in a rapidly rotating (small Rossby number Ro) stably neutrally stratified (SNS) fluid consisting of a stratified upper layer with $N>f$ ($N$ is the buoyancy frequency, $f$ the Coriolis parameter) and a homogeneous lower layer, the density and other fields being continuous at the interface between the layers. The angular speed of rotation is non-parallel to gravity; the traditional and hydrostatic approximations are not used. The wave spectrum in the model consists of internal and gyroscopic waves. During the adjustment an arbitrary long-wave perturbation is split in a unique way into slow quasi-geostrophic (QG) and fast ageostrophic components with typical time scales $(Ro\, f)^{-1}$ and $f^{-1}$, respectively. The QG flow is governed by two coupled nonlinear equations of conservation of QG potential vorticity (PV) in the layers. The fast component is a sum of internal waves and inertial oscillations (long gyroscopic waves) confined to the homogeneous layer and modulated by an amplitude depending on coordinates and slow time. On times $t\sim (\, f\, Ro)^{-1}$ the slow component is not influenced by the fast one but the inertial oscillations amplitude is coupled to the QG flow and obeys an equation practically coinciding with that in the barotropic case (Reznik, J. Fluid Mech., vol. 743, 2014, pp. 585–605). A non-stationary boundary layer with large vertical gradients of horizontal velocity develops in the stratified layer near the interface to prevent penetration of the inertial oscillations into the stratified fluid; an analogous weaker boundary layer arises near the upper rigid lid. At large times the internal waves gradually decay because of dispersion and the resulting motion consists of the slow QG component and inertial oscillations confined to the barotropic lower layer.