We present a time-domain algorithm for simulating nonlinear propagation of surface plasmon polaritons (SPPs) in chalcogenide glass. Due to the high non-linearity property and strong dispersion and confinement chalcogenide glasses are widely known as ultrafast nonlinear materials. We have used the finite difference time domain (FDTD) method to develop the simulation algorithm for the current analysis. We have modeled the frequency dependent dispersion properties and third order nonlinearity property of chalcogenide glass utilizing the general polarization algorithm merged in the auxiliary differential equation (ADE) method. The propagation dynamics of the whole structure with and without third order nonlinearity property of chalcogenide glass have been simulated and the effect of nonlinearity on the propagation properties of SPP has been investigated. © 2016 EDP Sciences, SIF, Springer-Verlag Berlin Heidelberg.