SUMMARYThe diffused optical waveguide is one of the most promising for use as an element of an integrated optical circuit, and optical functional devices such as an optical modulator and an optical switch can be composed of this waveguide. Analysis of this type of waveguide is difficult because the refractive index of the substrate is distributed continuously; there have ' been few studies on a waveguide with a metal cladding and a dielectric overlay and with the refractive index which is 2-dimensionally inhomogeneous. We propose an approximate scalar finite-element method which is applicable to a lossy diffused optical waveguide, and performed numerical analysis of a metal-clad and dielectric overlay-loaded diffused optical waveguide whose substrate has a 2-dimensionally inhomogeneous refractive index profile. The results are presented in this paper.