A numerical model for the transformation of irregular waves in a coastal area is developed, which takes account of shoaling, refraction, diffraction, bottom friction and wave breaking. The governing equations are the usual energy conservation equation and kinematic conservation equations, but to consider the diffraction effects additional terms are included in the usual kinematic conservation or wave number equations. A linear superposition technique is used to represent the spectral formation. and an explicit formula is developed for the estimation of friction factor of irregular waves. A breaking criterion of component waves, which is the modified form of the Kitaigorodskii saturation relation, is employed to restrict the growth of shoaling waves in very shallow waters. The model was applied to a laboratory test and satisfactory agreement was obtained between the computation and measurement.