We investigate the dynamics of an oscillatory boundary layer developing over a bed of collisional and freely evolving sediment grains. We perform Euler–Lagrange simulations at Reynolds numbers
${\textit{Re}}_\delta = 200$, 400 and 800, density ratio
$\rho _{\!p}/\rho _{\!f} = 2.65$, Galileo number
${\textit{Ga}} = 51.9$, maximum Shields numbers from
$5.60 \times 10^{-2}$ to
$2.43 \times 10^{-1}$, based on smooth wall configuration, and Keulegan–Carpenter number from
$134.5$ to
$538.0$. We show that the dynamics of the oscillatory boundary layer and sediment bed are strongly coupled due to two mechanisms: (i) bed permeability, which leads to flow penetration deep inside the sediment layer, a slip velocity at the bed–fluid interface, and the expansion of the boundary layer, and (ii) particle motion, which leads to rolling-grain ripples at
${\textit{Re}}_\delta = 400$ and
${\textit{Re}}_\delta = 800$. While at
${\textit{Re}}_\delta = 200$ the sediment bed remains static during the entire cycle, the permeability of the bed–fluid interface causes a thickening of the boundary layer. With increasing
${\textit{Re}}_\delta$, the particles become mobile, which leads to rolling-grain ripples at
${\textit{Re}}_\delta = 400$ and suspended sediment at
${\textit{Re}}_\delta = 800$. Due to their feedback force on the fluid, the mobile sediment particles cause greater velocity fluctuations in the fluid. Flow penetration causes a progressive alteration of the fluid velocity gradient near the bed interface, which reduces the Shields number based upon bed shear stress.