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This paper proposes an augmented electric field integral equation (A-EFIE) for layered medium Green's function. The newly developed matrix-friendly formulation of layered medium Green's function is applied in this method. By separating charge as extra unknown list, and enforcing the current continuity equation, the traditional EFIE can be cast into a generalized saddle-point system. Frequency scaling for the matrix-friendly formulation is analyzed when frequency tends to zero. Rank deficiency and the charge neutrality enforcement of the A-EFIE for layered medium Green's function is discussed in detail. The electrostatic limit of the A-EFIE is also analyzed. Without any topological loop-searching algorithm, electrically small conducting structures embedded in a general layered medium can be simulated by using this new A-EFIE formulation. Several numerical results are presented to validate this method at the end of this paper.