The evolution of wind waves in coastal zones leads to changes in the shape of the wave spectrum. Along the coast of Kerala, due to the presence of mudbanks during the southwest monsoon, we could observe downshifting of the peak frequency in the wave spectral data. The present study aims at proving the mechanism of frequency downshifting and possible influence of the downshifting process on mudbank formation. The results of SWASH (Simulating WAves till SHore) modeling and bispectral analysis shows that frequency downshifting occurs due to the difference nonlinear triad interactions of the main frequency peak of the wave spectrum with frequencies of the infragravity range independent of the viscosity of the medium. The increase in wave dissipation accelerates frequency downshifting additionally, decreasing the wave energy in the main peak frequency. It is shown that frequency downshifting can be one of the possible wave mechanisms of mudbank formation due to essentially different wave attenuation coefficients at the beginning and end of this process. For muddy cohesive sediments, it will lead to formation with an erosive profile at first and then an accumulative profile, i.e., mudbank formation.