A three-dimensional hydrodynamic model is developed for Sørvágsfjørður in the Faroe Islands. The model includes the effect of tides, surface winds and freshwater runoff. The model correctly simulates the process of estuarine circulation as well as conditions where reverse circulation occur. Current speeds at the surface are spiky and do not correlate well to measurements whereas currents at mid-depth and at the bottom show similar behavior as the measurements although the modelled currents at mid-depth have slightly smaller magnitudes. However, the model is considered adequate to use as research tool to be used in the investigation of various process that depend on the hydrodynamics.