A first-order one-way wave system has been created based on characteristic analysis of the acoustic wave system and optimization of the dispersion relation. We demonstrate that this system is equivalent to a third-order scalar partial-differential equation which, for a homogeneous medium, reduces to a form similar to the 45' paraxial wave equation. This system describes accurately waves propagating in a 2D heterogeneous medium at angles up to 75'.The one-way wave system representing downgoing waves is used for a modified reverse time migration method. As a wavefield extrapolator in migration, the downgoing wave system propagates the reflection events backwards to their reflectors without scattering at the discontinuities in the velocity model. Hence, images with amplitudes proportional to reflectivity can be obtained from this migration technique. We present examples of the application of the new migration method to synthetic seismic data where P-P reflections P-SV converted waves are present.Absorbing boundaries, useful in the generation of synthetic seismograms, have been constructed by using the one-way wave system. These boundaries absorb effectively waves impinging over a wide range of angles of incidence.which employ finite-difference operators to solve one-way or full wave equations. However, in the w-x migration, the surface-recorded wavefield is extrapolated downwards in depth, where in the reverse time migration, the extrapolation is performed backwards in time.The prestack wave-equation migration methods performed in the frequencyspace (c,.,-x) domain are very popular due to their numerical stability, their computational advantages e.g. highly parallelizable over frequencies, and their ability to handle arbitrary velocity variations (Yilmaz 1987). Although successful in many situations, the methods are limited by the assumptions made in deriving approximations to the paraxial wave equation (Gazdag 1980). Prestack reverse time migration (Sun and McMechan 1986) also incorporates lateral velocity variations into the space-time operations. However, reverse time migration employs the full wave equation and suffers from unwanted internal multiple reflections due to strong velocity variations. These unwanted reflections cause energy loss to the backward-propagated wavefield and are especially troublesome if they are coherent and migrate to positions where the primaries are weak. However, these problems may be reduced by introducing impedance matching (Baysal, Kosloff and Sherwood 1984).In order to avoid some of the problems in migration associated with the use of the full wave equation, the one-way wave equation is often used for migration. One-way wave equations are commonly obtained by seeking a polynomial or rational approximation to the dispersion relationship (Claerbout 1985). These equations are employed not only in seismic migration, but also in the development of absorbing boundaries (Clayton and Engquist 1977). However, the absorbing boundaries obtained from low-order approximations fail to absorb wa...