This work incorporates viscous effects and the no-slip criterion in analyzing the blade-vortex interaction (BVI) problem with the discrete vortex model. Most previous BVI investigations have been purely potential in nature, so that only the zero normal velocity criterion was imposed on the body surface. In the current work, a boundary-layer code that predicts separation on an infinite flat plate under the influence of a line vortex is adapted to the BVI problem, so that it may be used with a semi-infinite plate in a flowfleld composed of a freestream and numerous discrete vortices. Although a steady, laminar boundary-layer assumption is used to predict separation, the kinematics resulting from the interaction of the primary vortex and the shed vorticity are in agreement with previous observations.