This study aims at providing analytical investigations to the first and second-order on the wave–current–mud interaction problem by applying a perturbation method. Direct formulations of the wave–current–mud interaction could not be found in the literature. Explicit formulations for the particle velocity, dissipation rates, and phase shift in the first order and the mass transport in the second-order have been obtained. The findings of the current study confirmed that by an increase in the current velocity (e.g., moving from negative to positive values of current velocity), the dissipation rates and mud (instantaneous and mean) velocity decrease. The proposed assumption of a thin mud layer (boundary layer assumption) matches with the laboratory data in the mud viscosity of the orders of (0.01 N/m2) in both wave dissipation and mud mass transport leading to small ranges of discrepancies. The results from the newly proposed model were compared with the measurements and the results of an existing model in the literature. The proposed model showed better agreements in simulating the mud (instantaneous and mean) velocity compared to the existing one.