Seasonal and diurnal variability of thermal structure in the coastal waters off Visakhapatnam has been examined in relation to the flow field and surface winds utilizing the hourly data of temperature and currents taken at a fixed location over a tidal cycle at monthly intervals. The coastal currents in the pre-monsoon period and strong near-surface winter cooling processes affect the thermal structure of the coastal sea. Upwelling which is predominant during March to May with an intermittent relaxing event helps in the development of a strong layered thermal structure while convective mixing due to winter inversions during November to February causes weak thermal gradients in the water column.