A two-dimensional laterally averaged model for suspended sediment transport in steady gradually varied flow that is based on the Lagrangian reference frame is presented. The layered Lagrangian transport model (LLTM) for suspended sediment performs laterally averaged concentration. The elevations of nearly horizontal streamlines and the simulation time step are selected to optimize model stability and efficiency. The computational elements are parcels of water that are moved along the streamlines in the Lagrangian sense and are mixed with neighboring parcels. Three applications show that the LLTM can accurately simulate theoretical and empirical nonequilibrium suspended sediment distributions and slug injections of suspended sediment in a laboratory flume.