A surface wave model using three nested grids is applied to the eastern end of Lake Ontario to investigate wave propagation from an open lake environment to a small craft harbour protected by a breakwater. The Simulating WAves Nearshore (SWAN) spectral wave model, coupled with the Delft3D hydrodynamic model, is applied to simulate a series of storms in November, 2013. The model results are compared to observations from two pressure sensors, and used to quantify wave properties around existing and future breakwaters to evaluate the bulk changes to the harbour configuration. Overall, the results indicate that the rubblemound breakwater reduces wave heights in the existing harbour by 63% compared to no breakwater, and that the addition of a surface breakwater extension could reduce wave heights by an additional 54%. Wave height attenuation was found to be highly dependent on the incident wave direction relative to breakwater orientation. The spectral wave model is useful for simulating wave transformation for broad directional spectra in wind-sea conditions over large scales to semi-protected areas such as small craft harbours.