An asymptotic solution is obtained to the problem of internal wave propagation in a horizontally stratified inhomogeneous fluid of non-uniform depth. It also applies to fluids which are not stratified, but in which the constant density surfaces have small slopes. The solution is valid when the wavelength is small compared to all horizontal scale lengths, such as the radius of curvature of a wavefront, the scale length of the bottom surface variations and the scale length of the horizontal density variations. The theory underlying the solution involves rays, a phase function satisfying the eiconal equation, and amplitude functions satisfying transport equations. All these equations are solved in terms of the rays and of the solution of the internal wave problem for a horizontally stratified fluid of constant depth. The theory is thus very similar to geometrical optics and its extensions. It can be used to treat problems of propagation, reflexion from vertical cliffs or from shorelines, refraction, determination of the frequencies and wave patterns of trapped waves, etc. For fluid of constant density, it reduces to the theory of Keller (1958). The theory is applied to waves in a fluid with an exponential density distribution on a uniformly sloping beach. The predicted wavelength is shown to agree well with the experimental result of Wunsch (1969). It is also applied to determine edge waves near a shoreline and trapped waves in a channel.