A numerical model has been developed for the simulation of transformations of traveling coastal waves and wave induced coastal currents. The model is applicable to varying bottom topographies and has two components, a wave propagation model and a wave driven current model. Wave propagation model is based on nonlinear parabolic mild slope equation and could simulate wave shoaling, refraction, diffraction and breaking. Different wave approach angles can be investigated on the same computational grid. Wave driven current model is based on vertically averaged non-linear shallow water equations. In the solution method, partial differential equations are replaced by a set of finite difference equations on a space staggered grid. Model has been applied to Obakoy coastal waters located at the Mediterranean coast of Turkey where there exist current measurements.