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This letter proposes a hybrid method for the modeling of multilayer planar structures with locally inhomogeneous penetrable objects. By using the equivalence principle, the original problem can be decomposed into external and internal problems, which are formulated by the mixed-potential integral equation (MPIE) method and finite-difference time-domain (FDTD) method, respectively. Instead of directly implementing the continuity boundary conditions, an iterative approach is used to solve the hybrid FDTD-MPIE problem. Numerical results are presented to validate the hybrid method.