The hydrodynamic problem of a two dimensional wedge entering waves with gravity effect is analysed based on the incompressible velocity potential theory. The problem is solved through the boundary element method in the time domain. The stretched coordinate system in the spatial domain, which is based on the ratio of the Cartesian system in the physic space to the vertical distance the wedge has travelled into the water, is adopted based on the consideration that the decay of the effect of the impact away from the body is proportional to this ratio. The solution is sought for the total potential which includes both the incident and disturbed potentials, and decays towards the incident potential away from the body. A separate treatment at initial stage is used, in which the solution for the disturbed potential is sought to avoid the very large incident potential amplified by dividing the small travelled vertical distance of the wedge. The auxiliary function method is used to calculate the pressure on the body surface. Detailed results through the free surface elevation and the pressure distribution are provided to show the effect of the gravity and the wave, and their physical implications are discussed.