Surface waves may generate significant loadings on the seabed destabilizing sediments and the supporting marine structures. This threat is more pronounced in shallower water depths where the cyclic wave loading may induce residual pore water pressure in sediments triggering soil liquefaction. In this paper, a coupled numerical framework is presented to evaluate the interaction of waves and horizontal seabed considering nonlinear cyclic behavior of the cohesionless soil. A simple experimental model is employed for concurrent simulation of nonlinear buildup of pore pressure and deformation of saturated sand subjected to the cyclic loadings. The model (in elemental scale) is incorporated into a finite element code to solve the interaction of wave and seabed. Poro-elastoplastic response of the seabed is obtained by modifying the Biot’s coupled flow-and-deformation equations by adding equivalent nodal force terms associated with residual deformations of the soil. Potential flow theory is adopted for the fluid domain to model wave-induced pressure and flow fields. The governing equations and boundary conditions are solved using finite element analysis in time domain. The numerical framework is verified against results of cyclic triaxial compression tests and analytical solutions. Parametric studies are conducted to evaluate the effects of wave characteristics on triggering the residual liquefaction. The numerical results indicate good agreements with experimental measures. The results also show that for large waves, the progressive buildup of pore pressure in sediments may become high enough, leading to residual liquefaction. The details of the numerical model and the potential of residual liquefaction within the seabed soil are discussed.