Finite-difference time-domain methods suffer from reduced accuracy when discretizing discontinuous materials. We previously showed that accuracy can be significantly improved by using subpixel smoothing of the isotropic dielectric function, but only if the smoothing scheme is properly designed. Using recent developments in perturbation theory that were applied to spectral methods, we extend this idea to anisotropic media and demonstrate that the generalized smoothing consistently reduces the errors and even attains second-order convergence with resolution. , and replaces our previous heuristic proposal for anisotropic-material interfaces [5]. Ordinarily, the presence of discontinuous material interfaces degrades the accuracy of FDTD to first-order ͓O͑⌬x͔͒ from the usual second-order ͓O͑⌬x 2 ͔͒ accuracy [6], but our work demonstrates how an appropriate choice of subpixel smoothing can both restore second-order asymptotic accuracy and give the lowest errors compared with competing schemes even at modest resolutions. Subpixel smoothing has an additional benefit: it allows the simulation to respond continuously to changes in the geometry, such as during optimization or parameter studies, rather than changing in discontinuous jumps as interfaces cross pixel boundaries. This technique additionally yields much smoother convergence of the error with resolution, which makes it easier to evaluate the accuracy and enables the possibility of extrapolation to gain another order of accuracy [4]. The ability to handle anisotropic materials is becoming increasingly important via the use of anisotropic materials to represent arbitrary coordinate transformations in Maxwell's equations [7], most prominently to design cloaking metamaterials [8]. Our smoothing scheme requires preprocessing of the materials and does not otherwise modify the FDTD algorithm. It is therefore particularly simple to implement (free software is available [9]).Our basic approach, as described previously [2,3], is to smooth the structure to eliminate the discontinuity before discretizing, but because the smoothing itself changes the geometry we use first-order perturbation theory to select a smoothing with zero firstorder effect. For isotropic materials, this approach made rigorous a smoothing scheme that had previously been proposed heuristically [10][11][12] and explained its second-order accuracy [3]. Advances in perturbation theory have enabled us to extend this scheme to interfaces between anisotropic materials, initially for a plane-wave method [2]. Here, we adapt the technique to FDTD, combined with a recent FDTD scheme with improved stability for anisotropic media [4]. Although this Letter focuses on the case of anisotropic electric permittivity , exactly the same smoothing and discretization schemes apply to magnetic permeabilities µ owing to the equivalence in Maxwell's equations under interchange of /µ and E / H.We define an interface-relative coordinate frame as in Fig. 1, so that the first component "1" is the direction normal to the interface. ...