The capability of spaceborne altimeters to provide precise measurement of significant wave height and wind speed has been demonstrated repeatedly. It is shown in this paper that in addition to the significant wave height and wind speed, the wave period can be calculated from the semiempirical functions established from earlier wave research. The calculated characteristic wave period using the altimeter-derived wind speed and wave height are found to be in excellent agreement with the peak wave period and average wave period from the ocean buoy measurements in the Gulf of Mexico. Also, with the long time series of collocated data set, it is possible to compare altimeter output of wind and wave parameters with ocean buoy measurements taking into consideration the spatial lags between the buoy locations and the altimeter footprints, and the temporal lags between the two sensor systems. It is found that when the spatial lags are less than 10 km, the RMS difference of the significant wave height is approximately 0.1 m, which is the digitization resolution of the output from both altimeter and ocean buoy. For the wind speed, the RMS difference approaches 1.2 m/s in the Gulf of Mexico using the empirical algorithms. The wind speed agreement is significantly improved to 0.8 m/s when the tilting effect on the altimeter cross section is accounted for. In contrast to the spatial lags, temporal lags of up to 1 hour do not appear to produce significant difference in the statistics of comparison based on this study. ¿ 1998 American Geophysical Union