Rigorous and efficient numerical methods are presented for simulation of acoustic propagation in a medium where the absorption is described by relaxation processes. It is shown how FFT-based algorithms can be used to simulate ultrasound images in pulse-echo mode. General expressions are obtained for the complex wavenumber in a relaxing medium. A fit to measurements in biological media shows the appropriateness of the model. The wavenumber is applied to three FFT-based extrapolation operators, which are implemented in a weak form to reduce spatial aliasing. The influence of the absorptive medium on the quality of images obtained with a linear array transducer is demonstrated. It is shown that, for moderately absorbing media, the absorption has a large influence on the images, whereas the dispersion has a negligible effect on the images.