We review recent advances in computations of incompressible flows invo
lving a fully nonlinear free surface. Our focus is on the treatment of
the free surface and (large) nonlinearity. Both potential as well as
rotational and viscous free-surface flows are considered. For the form
er, we review mixed-Eulerian-Lagrangian boundary-integral methods and
the recently developed high-order spectral methods. For the latter, th
e focus is mainly on volume-discretization methods utilizing Eulerian
or boundary-fitted grids. The importance and proper treatment of visco
us free-surface conditions for these problems are emphasized. We concl
ude that computations for nonlinear potential-flow wave problems are r
easonably mature although further developments to improve efficiency a
nd robustness are needed for large complex problems. Nonlinear viscous
free-surface flow computations are relatively new. Many of the diffic
ulties such as large Reynolds numbers computations are common to flows
without a free surface. On the other hand, problems such as those ass
ociated with the contact line, wave breaking, free-surface turbulence,
and surfactants are unique to free-surface hydrodynamics and represen
t some of the difficult remaining challenges in computational fluid dy
namics.