We analyze a mathematical model of predator-prey interaction where the prey population is infected with a viral disease. Infection in the prey population is assumed to follow standard incidence. The dynamical behavior of the system is studied in terms of stability aspects. To model the gestation lag of the predator species and the spatially heterogeneous characteristics of an ecological population, we incorporate the concept of diffusionally coupled delay into the system. The bifurcation behavior of the delayed homogeneous system is studied. The existence of traveling wave solutions for the delay diffusion model is established. Numerical simulations are performed to justify analytical findings.