AbstractLarge‐eddy simulations (LES) of the Marine Atmospheric Boundary Layer (MABL) commonly utilize roughness length to parameterize wave effects on the sea surface. However, this method might not adequately capture the intricacies of wind‐wave interactions, especially in swell‐dominated conditions. In this study, we integrated a wave‐induced stress parameterization method into the open‐source LES code, PArallel Large‐eddy simulation Model (PALM), and assessed its performance under low wind conditions with varying wave ages and directions. Our method treats windsea effects as surface friction while employing an exponentially decaying profile to represent swell‐induced stress. We examined the model's sensitivity to wind and wave parameters and calibrated the wave damping rate values across various scenarios, leveraging data from wave‐phase‐resolved simulations and field measurements. The enhanced LES model with the proposed wave parameterization effectively reproduces wave‐influenced wind characteristics such as upward momentum flux, low‐level wind maximum, and negative wind gradients, showing good agreement with previous numerical and observational data. Moreover, our model accounts for wind‐wave misalignment scenarios by calculating each directional and spectral wave stress component individually and integrating them over the wave spectrum. We found that the swell‐induced stress is the dominant force in the wave boundary layer (WBL) with low wind speed, with its magnitude significantly varying with the wave direction relative to the wind. This variation influences the dynamic equilibrium within the WBL, modifying both wind shear and wind veer, and these effects persist up to the top of the boundary layer flow.