Abstract: We present a new method for the real-time simulation of fluid surface waves and their interactions with floating objects. The method is based on the new concept of wave particles, which offers a simple, fast, and unconditionally stable approach to wave simulation. We show how graphics hardware can be used to convert wave particles to a height field surface, which is warped horizontally to account for local wave-induced flow. The method is appropriate for most fluid simulation situations that do not involve significant global flow. It is demonstrated to work well in constrained areas, including wave reflections off of boundaries, and in unconstrained areas, such as an ocean surface. Interactions with floating objects are easily integrated by including wave forces on the objects and wave generation due to object motion. Theoretical foundations and implementation details are provided, and experiments demonstrate that we achieve plausible realism. Timing studies show that the method is scalable to allow simulation of wave interaction with several hundreds of objects at real-time rates.