A new approach is developed for fast solution of complex dynamic problems in nonlinear optics. The model consists of the nonlinear Maxwell's equations coupled with time-dependent electron density equation. The approach is based on the Finite-Difference Time-Domain and the auxiliary differential equation methods for frequency-dependent Drude media with a time-dependent carrier density, changing due to Kerr, photoionization, avalanche, and recombination effects. The system of nonlinear Maxwell-Ampere equations is solved by an iterative fixed-point procedure. The proposed approach is shown to remain stable even for complex nonlinear media and strong gradient fields. Graphics-processing-units technique is implemented by using an efficient algorithm enabling solution of massively 3-dimensional problems within reasonable computation time. KEYWORDS electron density, femtosecond laser irradiation, GPU-accelerated FDTD, nonlinear Maxwell's equations, nonlinear optics, photoionization 1 Int J Numer Model. 2018;31:e2215. wileyonlinelibrary.com/journal/jnm How to cite this article: Rudenko A, Colombier J-P, Itina TE. GPU-based solution of nonlinear Maxwell's equations for inhomogeneous dispersive media. Int J Numer Model. 2018;31:e2215.