Installation of offshore wind turbines (OWTs) requires careful planning to reduce costs and minimize associated risks. The purpose of this paper is to present a method for assessing the allowable sea states for the initial hammering process (shallow penetrations in the seabed) of a monopile (MP) using a heavy lift floating vessel (HLV) for use in the planning of the operation. This method combines the commonly used installation procedure and the time-domain simulations of the sequential installation activities. The purpose of the time-domain simulation is to quantitatively study the system dynamic responses to identify critical events that may jeopardize the installation and the corresponding limiting response parameters. Based on the allowable limits and the characteristic values of the limiting response parameters, a methodology to find the allowable sea states is proposed. Case studies are presented to show the application of the methodology. The numerical model of the dynamic HLV–MP system includes the coupling between HLV and MP via a gripper device, and soil–MP interaction at different MP penetration depths. It is found that the limiting parameters are the gripper force and the inclination of the MP. The systematic approach proposed herein is general and applies to other marine operations.