The lack of suitable boundary conditions in practical surface wave simulations with maritime structures in current or at forward speed may cause energy in the computational domain to accumulate due to spurious wave reflection. The common way to prevent wave reflection is to use passive wave absorbers, such as damping zones or relaxation zones, which requires larger domains at the cost of computational effort. Our goal is to derive a local generating absorbing boundary condition (GABC) for long-crested irregular waves on top of a mean flow, using the flow to model the forward speed of a structure such as a ship. Earlier work has demonstrated that a local GABC for free surface waves has a performance similar to passive wave absorbers, but at a reduced computational effort. New in the present work is that we extend, verify and validate the GABC in the presence of a nonzero mean flow. The GABC is designed to be accurate for a range of wave components in irregular sea states, with the resulting reflection coefficients for each component lower than a chosen value, say 5%. Having used potential flow theory for its derivation means that the boundary should not be placed at the exact location where wave breaking is expected, such as very close to the structure in the domain, or in the surf zone in coastal modeling. For the application with ships in this article that does not pose a limitation. The performance is demonstrated for a range of dimensionless wave number between 0 and 6. Such a boundary condition is obtained through a rational approximation of the linear dispersion relation with a mean flow, in combination with vertical derivatives of the solution variables along the boundary. Local linearization means that the GABC incorrectly considers bound, nonlinear wave components to be freely propagating wave components. Bound components, however, tend to have smaller amplitudes and do not appear to affect performance for the considered cases. Results of simulations with regular and irregular waves, on top of flows with different magnitudes and directions, are found to agree with the theory. The main source of differences is the implementation of the second derivate in the GABC near the free surface. Simulations of a Wigley hull at forward speed in irregular waves are compared to an experiment that was conducted specifically for validating the ABC. The data of the experiment are available as open data through doi: 10.4121/21320604. The comparison between simulation and experiment demonstrates that the GABC with a mean flow can be applied not only for theoretical simulations with propagating waves, but also for more practical applications with a structure in the domain.