A three-dimensional data assimilation scheme is described and tested, using the Geosat altimeter data and a high-resolution, primitive equation, numerical ocean model of the Gulf Stream region. The assimilation scheme is based on an optimal interpolation approach in which data along satellite tracks are continuously interpolated horizontally and vertically into the model grid and assimilated with the model prognostic fields. Preprocessed correlations between surface elevation anomalies and subsurface temperature and salinity anomalies are used to project surface information into the deep ocean; model and data error estimates are used to optimize the assimilation. Analysis fields derived from the Navy's Optimum Thermal Interpolation System are used to initialize the model and to provide some estimate of errors. To evaluate the effectiveness of the assimilation scheme, the errors of model oceanic fields (surface elevation, Gulf Stream axis, temperature) with data assimilation are compared with erro... Abstract A three-dimensional data assimilation scheme is described and tested, using the Geosat altimeter data and a high-resolution, primitive equation, numerical ocean model of the Gulf Stream region. The assimilation scheme is based on an optimal interpolation approach in which data along satellite tracks are continuously interpolated horizontally and vertically into the model grid and assimilated with the model prognostic fields. Preprocessed correlations between surface elevation anomalies and subsurface temperature and salinity anomalies are used to project surface information into the deep ocean; model and data error estimates are used to optimize the assimilation. Analysis fields derived from the Navy's Optimum Thermal Interpolation System are used to initialize the model and to provide some estimate of errors. To evaluate the effectiveness of the assimilation scheme, the errors of model oceanic fields (surface elevation, Gulf Stream axis, temperature) with data assimilation are compared with erro...