Processes at a small scale within the atmosphere and oceans captivate interest, yet their significance extends to influencing Earth's climate. Examples such as ocean waves and atmospheric clouds illustrate this impact. Clouds, for instance, wield substantial influence over our planet's overall energy equilibrium by interacting with atmospheric radiation. They also closely intertwine with the water cycle, profoundly affecting precipitation patterns and carrying significant societal consequences. Likewise, internal waves within the ocean can alter water masses, thus influencing global ocean circulation, by transporting energy and momentum. This presentation aims to explore recent progress in our fundamental understanding of these smaller-scale dynamics, and delve into the persisting challenges and open questions.