This book presents two distinct aspects of wave dynamics ¿ wave propagation and diffraction ¿ with a focus on wave diffraction. The authors apply different mathematical methods to the solution of typical problems in the theory of wave propagation and diffraction and analyze the obtained results. The rigorous diffraction theory distinguishes three approaches: the method of surface currents, where the diffracted field is represented as a superposition of secondary spherical waves emitted by each element (the Huygens¿Fresnel principle); the Fourier method; and the separation of variables and Wiener¿Hopf transformation method. Chapter 1 presents mathematical methods related to studying the problems of wave diffraction theory, while Chapter 2 deals with spectral methods in the theory of wave propagation, focusing mainly on the Fourier methods to study the Stokes (gravity) waves on the surface of inviscid fluid. Chapter 3 then presents some results of modeling the refraction of surface gravity waves on the basis of the ray method, which originates from geometrical optics. Chapter 4 is devoted to the diffraction of surface gravity waves and the final two chapters discuss the diffraction of waves by semi-infinite domains on the basis of method of images and present some results on the problem of propagation of tsunami waves. Lastly, it provides insights into directions for further developing the wave diffraction theory.