Sea Surface Temperature (SST) is one of the genesis parameter for the formation of Tropical Cyclone (TC). This parameter also has strong interaction with other actual parameters such as Rain Fall (RF), Sea level pressure (SLP) at 200 hpa and 850 hpa, Wind direction at 200 hpa and 850 hpa, Wind speed at 200 hpa and 850 hpa, Relative Humidity at 500 hpa and 850 hpa which has been studied and its differences and error structure have been analyzed by using Weather Research & Forecasting (WRF) Model during the period when the tropical cyclone Nisha formed over Bay of Bengal. NOAA AVHRR RTG SST, NCEP FNL data are fed to the model as input. This model runs with FNL data for the period 24th November 2008 to 28th November 2008 with and without SST data. The effect of SST data in the forecast fields of (i). Rain Fall (RF), (ii). Sea level pressure (SLP) at 200 hpa (12.3 km above mean sea level (a.m.s.l)) and 850 hpa (1.5 km a.m.s.l), (iii). Wind direction at 200 hpa and 850 hpa, (iv). Wind speed at 200 hpa and 850 hpa, (v). Relative Humidity at 500 hpa and 850 hpa are studied and shown in pictorial form. In this study Bay of Bengal (BOB) is taken as the study area, because of its significant contribution to Climate Change and its impacts on our east coast. These model derived result well agree with the Satellite Data derived result.