Techniques for deriving estimated bathymetry from satellite data are well established; however, use of this product in complex terrains is limited. Accurate bathymetry is essential in the construction of hydrodynamic models and satellite-derived bathymetry is a strong candidate for use in coastal and shallow waters. A case study of Palau is presented which uses satellite-derived bathymetry as input to a hydrodynamic model. Palau underwent widespread coral bleaching during 1998, thought to be due to thermal stress, and existing satellite products observed anomalous increases in temperature. The numerical model is used to evaluate sea surface temperature patterns during such a bleaching event. Comparisons between the model and thermal indicators derived from satellite data are made, and the results used to suggest improvements for satellite monitoring of thermal stress events