In this paper, the absorbing property of the discrete Green's function ABC, which was based on a powerful concept of the TLM method, has been improved by relocating loss process from the time domain to the space domain. The proposed scheme simply adds a loss matrix to the connection matrix in the basic TLM algorithm to make the formulation of the ABC more efficient. Various lengths of absorbing layers discretized for a WR-90 empty waveguide have been tested in terms of reflection property. An expression for an optimum absorbing property has been also derived with respect to the length of the layer. Comparison of the layer with the discrete Green's function ABC shows that the layer in this study has improved reflection property better than approximately 3 and 6 dB, respectively, when 50Δ and 60Δ absorbing layers have been adopted for the WR-90 waveguide. Finally, the layer has been applied to a WR-75 metal insert filter as an example.