In this paper, an unconditionally stable time-domain method is proposed to investigate the external electromagnetic (EM) field illumination on the nonlinearly loaded transmission lines. In the proposed algorithm, the field to line coupling equations and linear/nonlinear boundary conditions are incorporated and expressed in a matrix form. The derived differential matrix equations are then discretized and solved using the proposed finite difference time domain (FDTD) method approach. The discretized nonlinear matrix equations are also solved by applying a globally convergent iterative method to ensure the stability of the method. Moreover, the experimental investigations are conducted using a transverse EM (TEM) cell for a single microstrip line and a power detector circuit as a nonlinearly loaded transmission line to confirm the accuracy and stability of the proposed method. With the merit of satisfactory accuracy and unconditional stability for the entire range of time steps, the presented approach would be applicable for analyzing the microwave linear/nonlinear circuits subjected to the external incident EM wave.