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A computationally efficient algorithm, which combines the characteristic basis function method (CBFM), the physical optics (PO) approach (when applicable) with the forward backward method (FBM), is applied for the investigation of electromagnetic scattering from-and propagation over-large-scale rough terrain problems. The algorithm utilizes high-level basis functions defined on macro-domains (blocks), called the characteristic basis functions (CBFs) that are constructed by aggregating low-level basis functions (i.e., conventional sub-domain basis functions). The FBM as well as the PO approach (when applicable) are used to construct the aforementioned CBFs. The conventional CBFM is slightly modified to handle large-terrain problems, and is further embellished by accelerating it, as well as reducing its storage requirements, via the use of an extrapolation procedure. Numerical results for the total fields, as well as for the path loss are presented and compared with either measured or previously published reference solutions to assess the efficiency and accuracy of the algorithm.