Delaware Bay is a large estuary with a deep, relatively narrow channel and wide, shallow banks, providing a clear example of a "channel-shoal" estuary. This numerical modeling study addresses the exchange flow in this channel-shoal estuary, specifically to examine how the lateral geometry affects the strength and mechanisms of exchange flow. We find that the exchange flow is exclusively confined to the channel region during spring tides, when stratification is weak, and it broadens laterally over the shoals during the more stratified neap tides but still occupies a small fraction of the total width of the estuary. Exchange flow is relatively weak during spring tides, resulting from oscillatory shear dispersion in the channel augmented by weak Eulerian exchange flow. During neap tides, stratification and shear increase markedly, resulting in a strong Eulerian residual shear flow driven mainly by the along-estuary density gradient, with a net exchange flow roughly 5 times that of the spring tide. During both spring and neap tides, lateral salinity gradients generated by differential advection at the edge of the channel drive a tidally oscillating cross-channel flow, which strongly influences the stratification, along-estuary salt balance, and momentum balance. The lateral flow also causes the phase variation in salinity that results in oscillatory shear dispersion and is an advective momentum source contributing to the residual circulation. Whereas the shoals make a negligible direct contribution to the exchange flow, they have an indirect influence due to the salinity gradients between the channel and the shoal. Plain Language Summary Delaware Bay is a large estuary with a deep, relatively narrow channel and wide, shallow banks, providing a clear example of a "channel-shoal" estuary. This numerical modeling study addresses the exchange flow, that is, the two-way transport that provides continual exchange of water and waterborne material between the estuary and the ocean. This study examines how the particular lateral geometry of the channel-shoal estuary affects the strength and mechanisms of exchange flow. We find that the exchange flow is generally confined to the channel region, even more so during the times of maximum tidal forcing. The study also addresses the mechanisms of exchange flow-particularly the role of tidal processes compared to the flow resulting from the density contrast between fresh water entering the estuary from riverine sources and high-salinity oceanic water at the mouth. The study finds that tidal processes dominate during the peak tidal amplitude, that is, spring tides, and density-driven processes dominate during minimum tidal amplitude, that is, neap tides. During both spring and neap tides, the lateral variation in salinity is an important driving force for the residual circulation as well as the tide-induced salt transport.