On June 2, 1994, at 18:17 GMT a magnitude 7.6 earthquake occurred off the coast of Banyuwangi, south of Java Island, Indonesia and produced devastating tsunami. This study is aimed to validate the tsunami computation model by comparing the results with field survey data for the assessment possible impact of tsunami on the coastal area. We used a simulation code in the nested grid system, which is based on the TUNAMI-N2 originally developed by Tohoku University. We considered five fault models with reference to the result of fault slip inversion. In Model l we simplified the heterogeneous slip model obtained by inversion analysis to a uniform fault. In Model 2, we decomposed the fault area of the total 4 rectangular sub faults to resemble the slip distribution. In Model 3, we considered similar model to Model 1 but we increased the slip amount. In Model 4, we assumed a tsunami earthquake. In Model 5 we modified Model 4 by including effects of horizontal displacement. We found the results of Model 5 are almost similar to the field survey data. Tsunami arrival time fastest approximately 25 minute after main shock was recorded in location of Lampon East. In the tsunami inundation modelling in Rajekwesi inundation depth reaches 5 m, and inundation distance is 70 m. In Pancer inundation depth reaches 7 m and inundation distance is 70 m. In Lampon inundation depth reaches 8 m and inundation distance is 300 m. We compared the field survey data and the modelling result and found the computed tsunami heights and inundation depths are in fair agreement with the observations along the south coast of Java, when we take into consideration the characteristics of the morphology of target areas that the bays are concave and the depth is shallow.