The formation mechanism of a cold sea-fog case observed over the Yellow Sea near the western coastal area of the Korean Peninsula is investigated using numerical simulation with a one-dimensional turbulence model coupled with a three-dimensional regional model. The simulation was carried out using both Eulerian and Lagrangian approaches; both approaches produced sea fog in a manner consistent with observation. For the selected cold sea-fog case, the model results suggested the following: as warm and moist air flows over a cold sea surface, the lower part of the air column is modified by the turbulent exchange of heat and moisture and the diurnal variation in radiation. The modified boundary-layer structure represents a typical stable thermally internal boundary layer. Within the stable thermally internal boundary layer, the air temperature is decreased by radiative cooling and turbulent heat exchange but the moisture loss due to the downward vapour flux in the lowest part of the air column is compensated by moisture advection and therefore the dewpoint temperature does not decrease as rapidly as does the air temperature. Eventually water vapour saturation is achieved and the cold sea fog forms in the thermal internal boundary layer.