Knowledge of ocean weather conditions is important for mariners, offshore oil and gas operations, evacuation procedures, and sustainable management of coastal resources. While NOAA provides forecasts of ocean weather for outer oceans, these forecasts do not cover near-shore areas which present their own challenges such as complex coastal morphology, more complex wave dynamics, etc. To supplement NOAA's efforts, we describe the development of a coupled wind-wave-current forecasting system for Cook Inlet (CI), Alaska. The system utilizes two-way coupling to incorporate the effects of wave-current interaction in the forecasting scheme. Results indicate that the inclusion of surface-currents greatly affects the wave dynamics in the northern CI. During flood currents, the modeled wave heights are found to increase by as much as 50% compared to those without the effect of currents. However, preliminary findings suggest that the effect of wave model on the circulation model is marginal.