Reanalysis datasets provide temporally/spatially continuous data for sea level and wind wave climate studies but often lack the resolution to resolve the complex coastal physical processes. To address this issue, a high-resolution coupled circulation-wave model (ADCIRC + SWAN) is applied to dynamically downscale storm tides (tide + surge + wave setup) and waves in the western North Atlantic Ocean. The model is forced at its sea surface boundary with hourly surface pressure and wind fields, and its open boundary with water levels and direction-frequency wave spectrum from the ERA5 reanalysis dataset. The sensitivity of the model is evaluated for different combinations of internal tide energy conversion, quadratic friction coefficients, and wave physics packages. For the best model setup, the results show an RMSE range of 0.114 m–0.295 m for storm tide, 0.176 m–0.298 m for non-tidal residual, 0.143 m–0.39 m for significant wave height, and 0.42 s–1.04 s for mean wave period. Incorporating the direction-frequency wave spectrum as an open boundary condition improves the model's accuracy, reducing the RMSE for significant wave heights by up to 7% and for the mean wave period by up to 30% over a one-month simulation period.