In this work, a novel Split-Step Wavelet Method (SSWM) is developed for the solution of two dimensional parabolic equation to model the radiowave propagation in tropospheric ducts. Galerkin projection method with periodic Daubechies wavelet is used to discretize the symmetrically extended height operator. Later, a marching algorithm like Split-Step Fourier transform Method (SSFM) is developed by taking diffraction and refraction effects separately. Discrete Mixed Fourier Transform (DMFT) Method is used to incorporate the impedance boundary conditions. Finally, results are compared with those from Advance Refractive Effects Prediction System (AREPS). Results show that the proposed methods have an ability to model the radiowave propagation in troposphere as accurately as AREPS and it can be a good alternative to SSFM. © 2011 IEEE.