A finite element numerical model is presented considering the effect of refraction, diffraction, and energy dissipation by breakwater. As wave move from deep to shallow water coastal regions, wave parameter changes as a result of depth variations, presence of irregular shore boundaries, and wave reflections from the coastline. Therefore, to understand the wave transformation phenomenon near the coastal region, mild slope equation is solved using the finite element method. The numerical model is validated against the experimental and numerical results available for the rectangular domain and is applied to a real coastal Paradip port, situated in Odissa (India). The wave height is computed at the selected key stations in the port. From the simulated results, it is observed that the present numerical model with dissipation parameter is an efficient and useful tool for the analysis of water surface wave problem in realistic domains