Storm surge inundation is a major concern in marine hazard risk assessment during extreme weather conditions. In this study, a high-resolution coupled model (the ADVanced CIRCulation model + the Simulating WAves Nearshore model) was used to investigate the storm surge inundation in the southwestern Hangzhou Bay region during Typhoon Chan-hom in 2015. The simulated hydrodynamic processes (sea surface wave and storm tide) were validated with measured data from wave buoys and tide gauges, indicating that the overall performance of the model was satisfactory. The storm surge inundation in the coastal area was simulated for several idealized control experiments, including different wave effects (wave-enhanced wind stress, wave-enhanced bottom stress, and wave radiation stress). Dike overflowing cases with different dike heights and dike breaking cases with different dike breach lengths were considered in the simulation. The results highlight the necessity of incorporating wave effects in the accurate simulation of storm surge inundation. Dike height significantly influences the magnitude and phase of the maximum inundation area in the dike overflowing cases, and dike breach length is an important factor impacting the magnitude of the maximum inundation area in the dike breaking cases. This study may serve as a useful reference for accurate coastal inundation simulation and risk assessment.