An improved higher order convolutional perfectly matched layer (HO‐CPML) algorithm is proposed, which combines the complex envelope (CE) method and the alternating direction implicit (ADI) method. This algorithm is solved by the auxiliary differential equation method in the unmagnetized plasma, so as to simulate the unconditionally stable finite‐difference‐time‐domain (FDTD). The novel HO‐CPML with fractional decomposition method different from the previous one is adopted to truncate the unmagnetized plasma, making full use of the characteristics of the HO‐CPML. The numerical example in plasma simulation shows the characteristics of the algorithm directly. According to the simulation results, the algorithm is effective, and the absorption effect is better than the conventional ADI (CL‐ADI) algorithm and the first order CPML (FO‐CPML) algorithm.