S U M M A R Y 3-D wave propagation in a waveguide composed of laterally homogeneous partitions separated by vertical interfaces is treated in an exact manner. In each laterally homogeneous subregion, the wavefield is represented by Love-and Rayleigh-type modes, combined in such a way that displacements and tractions are continuous at the vertical discontinuities. In order t o achieve exact continuity at the interfaces, near-field modes which exponentially decay in the propagation direction and are associated to fully complex wavenumbers, must be included in the modal representation. The expansion coefficients of the mode series are computed directly by exploiting orthogonality relations between modes of different type, order and propagation direction. Since the boundary conditions at the discontinuities are satisfied exactly, the resulting expansion of the wavefield is valid even on the interfaces themselves. Numerical results are presented for a single vertical discontinuity and a lamella.