In order to simulate wave propagation accurately, a two-dimensional numerical wave flume was constructed based on the smoothed particle hydrodynamics and arbitrary Lagrange Euler(SPH-ALE)method. An approximate Riemann solver was introduced to replace the artificial viscosity in the standard SPH model. The repulsive force boundary condition was used at the solid wall to prevent fluid particles from penetrating the solid boundary. The exponential damping function was used in the sponge layer to eliminate wave reflection at the end of the flume. The regular wave propagation was simulated in the constructed wave flume. The results show that, in comparison with the standard SPH method using artificial viscosity, the SPH-ALE method can simulate the wave propagation without attenuation and effectively reduce the pressure fluctuations near the solid boundaries.