The parabolic equation method based on digital elevation model (DEM) is applied on propagation predictions over irregular terrains. Starting from a parabolic approximation to the Helmholtz equation, a wide-angle parabolic equation is deduced under the assumption of forward propagation and the split-step Fourier transform algorithm is used to solve it. The application of DEM is extended to the Cartesian coordinate system and expected to provide a precise representation of a three-dimensional surface with high efficiency. In order to validate the accuracy, a perfectly conducting Gaussian terrain profile is simulated and the results are compared with the shift map. As a consequence, a good agreement is observed. Besides, another example is given to provide a theoretical basis and reference for DEM selection. The simulation results demonstrate that the prediction errors will be obvious only when the resolution of the DEM used is much larger than the range step in the PE method.