The interaction between the wave and fluid mud layer plays an important role in the development of silt coast. Sediment is essentially transported in the form of rheological flow of mud layer under the wave action, and on the other hand, the fluid mud layer damps the wave considerably. This paper studies the laws of wave energy dissipation and mud bed deformation, and the movement of mud layer through laboratory experiments. The results show that the wave energy dissipation follows an exponential law along the propagation distance. The bulk density of the mud layer affects the rate of the wave energy dissipation greatly. The wave damping coefficient (Ki) is a fuction of the mud density affected greatly by the relative wave height (H/h).Analysis also indicates that the mud density affect the rate of mud transport and the moving velocity (Vmax) of the surface mud is inversely proportional to the mud density. Both the relative wave height (H/h) and wave-damping coefficient (Ki) are proportional to the Vmax. Analysis also shows that the mud transport rate (Tr) is proportional to the wave damping rate (1-H0/H15), the relative wave height (H/h),and inversely proportional to the volume concentration (Cv) and dimensionless coefficient of H/gT2.