A simple two-layer, quasi-geostrophic model with bottom topography is shown to reproduce several features of the mesoscale circulation on the Norwegian continental shelf between 62¿N and 66¿N, as observed with in situ and remote sensing instruments during the Norwegian Continental Shelf Experiment (NORCSEX'88). The widening of the shelf, its steplike deepening northeastward along the coast, and the presence of the Haltenbank generate intense eddy activity. Further northeast, Atlantic Water is steered anticyclonically around the Haltenbank, and the Norwegian Coastal Current is squeezed toward the coast. The variability of the modeled and observed near-surface current is shown by ray-tracing calculations to be able to generate significant wave-current refraction. In addition to its importance for wave modeling and prediction, this fact opens possibilities for indirect surface current measurements from directional wave observations, particularly from synthetic aperture radar. ¿American Geophysical Union 1991