We describe a multicomponent coherent potential approximation for the diluted ferromagnet, which includes the effect of the environment on the Ising diagonal energy levels of a site as does previous work, and which also takes account of short‐range order, i.e., the correlation between environments of neighboring sites. Results are presented for simple and body centered cubic cases, and compare well with computer simulation results. They show little difference from the single site CPA theory, a simplified version of which is presented. We expect to find greater differences for the diluted antiferromagnet.