Tidal flow and water quality were simulated in this paper to assess environmental impact caused by pier construction projects in Onsan harbor system. The Surfacewater Modeling System (SMS) was applied to the Onsan harbor system, where coastal reclamation and dredging were planned to build the piers. A finite element mesh was constructed and refined to cover the complicated geometry of the Onsan harbor and the proposed reclamation area. The time variable change of tidal height at harbor inlet was given as an input condition to tidal simulation. The water quality simulation was based on the discharge rate of suspended solids at the reclamation area. The simulation results have shown reasonable agreements with real situations in both tidal flow and water quality. According to the proposed plan, tidal flow and water quality were predicted during and after the pier construction. The tidal simulation study showed that there would be no discernible change of tidal current in the harbor except for the dredged area. The water quality simulation, however, predicted that suspended solids would increase significantly near the reclaimed and dredged areas during construction.