Chiral media engineered for applications at microwave frequencies can be described as metamaterials composed of randomly oriented helices (with sizes typically less than a wavelength) embedded within an achiral background that is characterized by its permittivity and permeability. Chiral metamaterials embody properties of magnetoelectric coupling and polarization rotation. Chiral media are also highly dispersive and no effective full-wave time domain formulation has been available to simulate transient propagation through such an important class of metamaterials. A new finite-difference time-domain (FDTD) technique is introduced in this paper to model the interaction of an electromagnetic wave with isotropic dispersive chiral metamaterials, based on the implementation of a wavefield decomposition technique in conjunction with the piecewise-linear recursive convolution method. This formulation represents the first of its kind in the FDTD community. The FDTD model is validated by considering a one-dimensional example and comparing the simulations with available analytical results. Moreover, the FDTD technique is also used to investigate the propagation of electromagnetic waves through multilayered metamaterial slabs that include dispersive chiral and double-negative media. Hence, this model enables the investigation of complex dispersive metamaterials with magnetoelectric coupling and double-negative behavior as well as facilitates the exploitation of their unique properties for a variety of possible applications.