Two‐grid variational multiscale (VMS) algorithms for the incompressible Navier‐Stokes equations with friction boundary conditions are presented in this article. First, one‐grid VMS algorithm is used to solve this problem and some error estimates are derived. Then, two‐grid VMS algorithms are proposed and analyzed. The algorithms consist of nonlinear problem on coarse grid and linearized problem (Stokes problem or Oseen problem) on fine grid. Moreover, the stability and convergence of the present algorithms are established. Finally, Numerical results are shown to confirm the theoretical analysis. © 2016 Wiley Periodicals, Inc. Numer Methods Partial Differential Eq 33: 546–569, 2017