The WAVEWATCH model has become the operational ocean wave model several years ago. We are now approaching the second release of this model. This seminar will give an overview af all model changes. Several changes in the model are of a technical nature, and mostly of interest for model maintenance and for further development. The major change in this sense is the conversion to FORTRAN 90, including a fully modular redesign. From a user perspective, the major improvement is the inclusion of a technique to include unresolved islands into the model at a sub-grid level. Unresolved islands proved to be the dominant source of local errors in the model. The sub-grid technique virtually wipes out such local errors with local error reduction of over 50%.