A third-generation numerical wave model to compute random, short-crested waves in coastal regions with shallow water and ambient currents (Simulating Waves Nearshore (SWAN)) has been developed, implemented, and validated. The model is based on a Eulerian formulation of the discrete spectral balance of action density that accounts for refractive propagation over arbitrary bathymetry and current fields. It is driven by boundary conditions and local winds. As in other third-generation wave models, the processes of wind generation, whitecapping, quadruplet wave-wave interactions, and bottom dissipation are represented explicitly. In SWAN, triad wave-wave interactions and depth-induced wave breaking are added. In contrast to other third-generation wave models, the numerical propagation scheme is implicit, which implies that the computations are more economic in shallow water. The model results agree well with analytical solutions, laboratory observations, and (generalized) field observations. ¿ 1999 American Geophysical Union