This paper describes an adaptive quadtree-based 2DH wave–current interaction model for evaluating nearly horizontal wave-induced currents in the surf-zone. The model accounts for wave breaking, shoaling, refraction, diffraction, wave–current interaction, set-up and set-down, mixing processes (turbulent diffusion), bottom frictional effects, and movement of the land–water interface at the shoreline. The wave period- and depth-averaged governing equations, which conserve mass, momentum, energy and wave action, are discretised explicitly by means of an Adams–Bashforth second-order finite difference technique on adaptive hierarchical staggered quadtree grids. Grid adaptation is achieved through seeding points distributed according to flow criteria (e.g. local current gradients). The model is verified for nearshore circulation at a sinusoidal beach and nearshore currents at a multi-cusped beach. Reasonable agreement is obtained with experimental data from da Silva Lima [da Silva Lima, S.S.L., 1981. Wave-induced Nearshore Currents. PhD Thesis, Department of Civil Engineering, University of Liverpool] and Borthwick et al. [Borthwick, A.G.L., Foote, Y.L.M., Ridehalgh, A., 1997. Nearshore measurements at a cusped beach in the UK Coastal Research Facility, Coastal Dynamics '97, Plymouth, 953–962]. The modelling approach presented herein should be useful in simulating nearshore processes in complicated natural coastal domains. Of particular value is the local grid enrichment capability, which permits refined modelling of important localised flow behaviour such as rip currents and surf-zone circulation systems.