Wave energy is the most abundant source of renewable energy in the World. For the last two decades, engineers have been investigating and defining different methods for power extraction from wave motion. Two different turbines, namely Wells turbine and impulse turbine with guide vanes, are most commonly used around the world for wave energy power generation. The ultimate goal is to optimize the performance of the turbine under actual sea conditions. The total research effort has several strands; there is the manufacture and experimental testing of new turbines using the Wave Energy Research Team's (WERT) 0.6 m turbine test rig, the theoretical and computational analysis of the present impulse turbine using a commercial software package and finally the prediction of the performance of the turbine in a representative wave power device under real sea conditions using numerical simulation. Also, the WERT 0.6 m turbine test rig was upgraded with a data acquisition and control system to test the turbine in the laboratory under real sea conditions using the computer control system. As a result, it is proven experimentally and numerically that the turbine efficiency has been raised by 7% by reducing the hub-to-tip ratio from 0.7 to 0.6. Effect of tip clearance on performance of the turbine has been studied numerically and designed tip clearance ratio of 1% has been validated. From the numerical simulation studies, it is computed that the mean conversion efficiency is reduced around 5% and 4.58% due to compressible flow and damping effects inside OWC device. Copyright (C) 2005 John Wiley Sons, Ltd.