Modeling results for the M2 surface and internal tides in the Arctic Ocean (AO) are presented. These incorporate the data on tidal dynamics and energetics and tidally induced diapycnal diffusion. A modified version of the 3D finite-element hydrostatic model QUODDY-4 is used as a basis for modeling. It is shown that the predicted surface tide differs slightly from that obtained from other tidal models, whereas the internal tidal waves (ITW) are less than those in oceans of moderate and low latitudes. It also appears that ITW themselves belong to the family of trapped waves. This finding, together with the modeling results for averaged (over a tidal cycle) horizontal transport per unit length of barotropic tidal energy and depth-integrated density of baroclinic tidal energy, suggests that the ITW generation site is placed to the northwest of the New Siberian Islands. A local rate of baroclinic tidal energy dissipation is found to increase away from the bottom as observed on Mid-Atlantic and Hawaiian ridges, but only within the bottom boundary layer, and two-three orders of magnitude less than in other oceans. Also, the ITW decay scale in both summer and winter lies over the range of its values (100–1000 km) for Mid-Atlantic and Hawaiian ridges. A tidal cycle-, depth- and area-averaged coefficient of diapycnal diffusion is greater than the kinematic viscosity and less (but not much) than the canonical value of the vertical eddy diffusivity in the deep ocean, prescribed in models of global ocean circulation. From this results the conclusion that tidally induced diapycnal diffusion can be meaningful in the formation of the AO climate.