The improved Boussinesq equations for varying depth derived by Beji and Nadaoka[1]significantly improved the linear dispersive properties of wave models in intermediate water depths. In this study, a finite element method was developed to solve the improved Boussinesq equations. A spongy layer was applied at the open boundary of the computational domain to absorb the wave energy. The fourth-order predictor-corrector method was employed in the time integration. Several test cases were illustrated. The numerical results of this model were compared with laboratory data and those from other numerical models. It ts out that the present numerical model is capable of giving satisactory prediction for wave propagation.