Coastal circulation off Kayak Island in the northern Gulf of Alaska was explored in wintertime (October 2012 to March 2013) by deploying nine moorings within the Alaska Coastal Current (ACC). Hydrographic, bottom‐pressure, and velocity observations depicted well the winter variability of the ACC. Atmospheric observations showed a net loss of heat, 30 W m−2 or more, from the ocean to the atmosphere and indicated that storms with downwelling‐favorable winds over 10 m s−1 frequently passed over the area. Due to vigorous mixing during storms, the waters were well‐mixed or weakly stratified whereas bottom‐pressure anomalies were mainly related to surface‐elevation fluctuations and indicated that there was also a cross‐shelf surface‐elevation gradient. Current observations showed along‐shelf nearly barotropic subtidal flow of 40 cm s−1 or more throughout the water column. They also indicated that along‐shelf flow was primarily driven by the cross‐shelf pressure gradient resulting from the cross‐shelf surface‐elevation gradient and not by wind stress. Analyses suggested that flow dynamics within the ACC in winter were well‐described by vertically averaged momentum equations and showed a dominance of the cross‐shelf pressure gradient that was mainly balanced by the Coriolis term. Observations also showed that when winds relaxed, cold low‐salinity waters moved offshore and stratification was reestablished. Consequently, near‐shore waters were less dense, i.e., cooler and fresher than offshore waters resulting in the cross‐shelf density gradient that may have contributed to the along‐shelf flow by generating near‐surface currents of ∼20 cm s−1.