Despite its potential to realize image communication at extremely low rates, model-based coding (analysis-synthesis coding) still has problems to be solved for any practical use. The main problems are the difficulty in modeling unknown objects and the presence of analysis errors. To cope with these difficulties, we incorporate waveform coding into model-based coding (model-based/waveform hybrid coding). The incorporated waveform coder can code unmodeled objects and cancel the artifacts caused by the analysis errors. From a different point of view, the performance of the practically used waveform coder can be improved by the incorporation of model-based coding. Since the model-based coder codes the modeled part of the image at extremely low rates, more bits can be allocated for the coding of the unmodeled region. In this paper, we present the basic concept of model-based/waveform hybrid coding. We develop a model-based/MC-DCT hybrid coding system designed to improve the performance of the practically used MC-DCT coder. Simulation results of the system show that this coding method is effective at very low transmission rates such as 16kb/s. Image transmission at such low rates is quite difficult for an MC-DCT coder without the contribution of the model-based coder.