This paper presents the full wave analysis of microwave circuits with nonlinear device using the finite difference time domain method. The equivalent current source is used to model nonlinear device and all the electric field components at the nonlinear device are updated by FDTD algorithm. The currents and voltages of nonlinear device are calculated by the state equations and iteration method. To validate the proposed method, the S-parameters of NEC NE72089 MESFET in various conditions are analyzed and the results are compared with those of the ADS. The proposed method is applied to the analysis of a microwave amplifier, which includes NEC NE72089 MESFET. The analysis results obtained by the present method show good agreement with those of the ADS.