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This article describes key issues which have to be addressed to apply Computational Fluid Dynamics to Naval Hydrodynamics. The specific aspects of Naval Hydrodynamics are discussed and illustrated by recent simulations and comparisons with available experiments. Free-surface flows with or without waves and even violent phenomena such as ventilation or cavitation can be modelled with mixture-fluid surface capturing. Turbulence modelling of thick boundary layers and vortical flows requires anisotropic RANS models or hybrid RANS/LES in case of strongly separated flows. Moreover, fluid–structure interaction in the form of rigid or flexible body motion and multi-body systems is crucial to represent ship manoeuvring and propulsion. Finally, the paper underlines the central role played by anisotropic adaptive grid refinement in the accurate simulation of marine flows.