Numerous studies suggest that the lack skill of intensity forecasts maybe attributed to deficiencies in the current models, such as insufficient model resolution, and inadequate understanding of air-sea-wave interaction. On one hand, due to the buffer role of surface waves, air-side momentum flux is not identical to the ocean-side momentum flux. Under extreme wind conditions, the air-sea interface is no longer a distinct two-layer structure. Instead, a vapor-liquid mixed layer is formed with the air filling with sea spray droplets and the water filling with bubbles. Within this layer, the wind stress tends to saturate with the increase of wind speed. On the other hand, breaking waves produces large amounts of sea spray droplets. According to professor Andreas’ research, the sea spray heat flux is comparable to or even larger than the interfacial flux when wind speed over 26 m/s. In addition to these direct effect of surface waves, large waves generated by TC could enhance the mixing rate in the upper-ocean, which in turn affect TC intensity indirectly. In FIO-AOW, the atmospheric component (WRF), ocean surface wave component (MASNUM), and ocean circulation component (POM & ROMS) are physically coupled together by introducing these processes: 1. Thermal effect of sea spray on air-sea heat and moisture fluxes 2. Sea state dependent air-sea momentum flux 3. Non-breaking wave-induced vertical mixing 4. Relative wind speed 5. Rain-induced surface cooling