Abstract. Theoretical source models of underwater explosions are often applied in studying tsunami hazards associated with subaqueous volcanism; however, their use in numerical codes based on the shallow water equations can neglect the significant dispersion of the generated wavefield. A non-hydrostatic multilayer method is validated against a laboratory-scale experiment of wave generation from instantaneous disturbances and at field-scale subaqueous explosions at Mono Lake, California, utilising the relevant theoretical models. The numerical method accurately reproduces the range of observed wave characteristics for positive disturbances and suggests a relationship of extended initial troughs for negative disturbances at low-dispersivity and high-non-linearity parameters. Satisfactory amplitudes and phase velocities within the initial wave group are found using underwater explosion models at Mono Lake. The scheme is then applied to modelling tsunamis generated by volcanic explosions at Lake Taupō, New Zealand, for a magnitude representing an ejecta volume of 0.1 km3. Waves reach all shores within 15 min with maximum incident crest amplitudes around 0.2 m at shores near the source. This work shows that the multilayer scheme used is computationally efficient and able to capture a wide range of wave characteristics, including dispersive effects, which is necessary when investigating subaqueous explosions. This research therefore provides the foundation for future studies involving a rigorous probabilistic hazard assessment to quantify the risks and relative significance of this tsunami source mechanism.