A three dimension barotropic model, included the Mellor Yamada turbulent closure scheme, was applied to simulate M₂ tide, tidal and residual current in the Jiaozhou Bay. The tide simulation was verified. The model results show that the character of tidal current in Jiaozhou Bay is go back flow and the maximum current, 95 cm/s, is located at the mouth of Jiaozhou Bay. The multi cycles are showed in the horizontal residual current pattern. Five cycle locations had been verified by current observations. On a basis of model result, the differences between Eular and Lagrange residual current were compared and the vertical structures of Lagrange residual current were analyzed. The horizontal pattern of the vertical eddy viscosity is similar with depth distribution in Jiaozhou Bay. The vertical structure of the vertical eddy viscosity is showed that the values in the middle level are larger than these in the surface and bottom level.