Equivalent surface impedance boundary condition is implemented in the compact 2-D finite difference frequency domain(2-D CFDFD) method to analyze the propagation characteristics of multilayer metal-coated coaxial waveguide. The advantages of the 2-D CFDFD are reserved by applying the equivalent surface impedance boundary condition(SIBC).Compared with the no-coating coaxial waveguide, the multilayer coating coaxial waveguide makes a better propagation performance.