Simulating light propagation in anisotropic dynamic gain media such as semiconductors and solid-state lasers using the finite difference time-domain FDTD technique is a tedious process, as many variables need to be evaluated in the same instant of time. The algorithm has to take care of the laser dynamic gain, rate equations, anisotropy and dispersion. In this paper, to the best of our knowledge, we present the first algorithm that solves this problem. The algorithm is based on separating calculations into independent layers and hence solving each problem in a layer of calculations. The anisotropic gain medium is presented and tested using a one-dimensional set-up. The algorithm is then used for the analysis of a two-dimensional problem.