SAR (Synthetic Aperture Radar) images in the northwest Bay of Bengal indicate the existence of internal waves and their occurrence and intensity is topography dependent as indicated by in-situ data and satellite information. To complement and comprehend the observations, a three-dimensional Princeton Ocean Model is applied to study the generation and propagation of internal waves. The model domain is configured with a variable curvilinear grid and the input fields comprise bathymetry, initial temperature and salinity, wind stress, air-sea heat flux and tidal information. The numerical investigation indicated a predominant activity of internal waves in the north, and the rationale is three-fold. The first one could be the stable stratification due to fresh water discharge from head-bay major river system, secondly, the significant magnitude/range of the tides and finally, the bathymetry in the coastal waters off Paradip is about 12% shallower compared to that of Visakhapatnam and further south. The cumulative effect of these causes the predominance of internal waves in the north. The core of the energy is essentially in the low-frequency range and the model is able to simulate semi-diurnal and diurnal components reasonably well up to 6 h frequency (0.162 cph)