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This paper investigates the dynamics of discrete-time Rayleigh-Duffing oscillator by applying the forward Euler's scheme. It is shown that the system undergoes Hopf bifurcation and flip bifurcation by using the center manifold theorem and bifurcation theory. Also, it is proven the system possesses chaotic behavior in the sense of Marotto's definition. We compute the Lyapunov exponents numerically to show sensitive dependence to initial conditions and chaotic behavior. MSC Classification: 39A10 , 39A20 , 39A23 , 39A30 , 65L20

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