Numerical wave tank is a robust tool by which the nonlinear interactions between the body and the free-surface can be treated in time-domain. In this paper, a two-dimensional numerical wave tank based on the Spectral/Boundary-Element Method is developed, and applied successfully to the study of nonlinear wave diffraction around a submerged circular cylinder. Particularly, it is shown that the high-order wave components of significant wave height are developed in the lee-side of the cylinder and that these waves result in a negative drift force on the circular cylider.