We adapt a cellular automata algorithm in order to track the steps in a continuum model of epitaxial growth and couple it to adatom diffusion at the terraces. The model is capable to treat the Ehrlich–Schwoebel barrier at steps, which leads to instabilities during epitaxial growth. In order to examine the mound formation a nucleation model beyond the mean field approximation is included in our simulations. We show that the meander instability as well as the onset of mound formation can be treated by this model.