Internal seiches, which supply the energy responsible for mixing many lakes, are often modeled as vertically standing waves. However, recent observations of vertical seiche propagation in a small lake are inconsistent with the standard, vertically standing model. To examine the processes responsible for such propagation, drag and turbulent production in the bottom boundary layer of a small lake are related to the energy supplied by a propagating seiche (period 10–24 h). Despite complex and fluctuating stratification, which often inhibited mixing within 0.4 m of the bed, bottom stress was well represented by a simple drag coefficient model (drag coefficient 1.5 × 10−3). The net supply of seiche energy to the boundary layer was estimated by fitting a model for internal wave vertical propagation to velocity profiles measured above the boundary layer (1–4.5 m above lakebed). Fitted reflection coefficients ranged from 0.3 at 1 cycle/d frequency to 0.7 at 2.4 cycles/d (cf. near‐unity coefficients of classical seiche theories). The net supply of seiche energy approximately balanced boundary layer turbulent production. Three of four peaks in production and energy flux occurred 0.8–2.2 days after strong oscillating winds, a delay comparable to the time required for seiche energy to propagate to the lakebed. A model based on the estimated drag coefficient predicted the observed frequency dependence of the seiche reflection coefficient. For flat‐bed regions in narrow lakes, the model predicts that reflection is controlled by the ratio of water velocity to vertical wave propagation speed, with sufficiently large ratios leading to weak reflection, and clear vertical seiche propagation.