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A vectorial time-domain simulator of integrated optical structures containing second-order nonlinearities has been formulated and tested. The technique is based on the direct time-domain representation of the coupled nonlinear Maxwell's equations of the propagating fields. The proposed algorithm accounts for the full optical coefficient tensor, input depletion, and device-wave interactions, where the inaccuracies associated with the scalar and paraxial approximations are avoided. Error analysis associated with the proposed scheme is also given. The proposed model should find application in a wide range of device structures and also in the analysis of short-pulse propagation in second-order nonlinear devices.