The effect of increased bottom friction due to wind‐wave current interaction on continental shelves is examined with a two‐dimensional shallow water numerical model using an adaptation of the Grant and Madsen [1979] bottom‐boundary layer theory. In our formulation we allow for the wind‐wave amplitude to depend on the wind stress and bottom topography. We find that under strong tropical cyclones, the Grant and Madsen theory may break down in very shallow water where the wind‐wave amplitudes can become quite large. Since this is a region where the wind‐generated waves are particularly likely to be breaking, we introduce a wave‐breaking criterion into our bottom friction formulation. The effects of this wind‐wave‐induced bottom friction law on the wind‐driven circulation are then examined.