Sea ice in the marginal ice zone (MIZ) consists of relatively small floes with a wide size span. In response to oceanic and atmospheric forcing, it behaves as an approximately two-dimensional, highly polydisperse granular material. The established viscous-plastic rheologies used in continuum sea ice models are not suitable for the MIZ; the collisional rheology, in which sea ice is treated as a granular gas, captures only one aspect of the granular behaviour, typical for a narrow range of conditions when dynamics is dominated by binary floe collisions. This paper reviews rheology models and concepts from research on granular materials relevant for MIZ dynamics (average stress as a result of ‘microscopic’ interactions of grains; μ ( I ) and collisional rheologies). Idealized discrete-element simulations are used to illustrate granular effects and strong influence of the floe size distribution on strain–stress relationships in sheared sea ice, demonstrating the need for an MIZ rheology model capturing the whole range of ‘regimes’, from quasi-static/dense flow in the inner MIZ to the inertial flow in the outer MIZ. This article is part of the theme issue ‘Theory, modelling and observations of marginal ice zone dynamics: multidisciplinary perspectives and outlooks’.