The paper presents a proposal of a method used to calculate path loss over an irregular terrain in an open, rural environment. The proposed method is based on the analysis of three basic types of wave: direct, reflected and diffracted. The assumptions of Geometrical Optics (GO), which is used in reflection analysis, as well as diffraction phenomena, have been described. The diffraction phenomena is analysed according to the Uniform Theory of Diffraction (UTD) and the reflection is calculated according to the Ray Tracing (RT) method. In addition, the irregular surface model used for the simulation and analysis of results for various cases have been presented. All results were compared to propagation loss calculated by the well-known two-ray model.