Abstract We developed a 2D Finite-difference time-domain (FDTD) method for modeling a space-time modulated guidestar targeting wavefront shaping applications in disordered media. Space-time modulation in general (a particular example being the acousto-optic effect) is used here as a guidestar for the transverse confinement of light around the tagged region surrounded by disorder. Together with the guidestar, the iterative optical phase conjugation (IOPC) method is used to overcome the diffusion of light due to multiple scattering. A phase sensitive lock-in detection technique is utilized to estimate the steady-state amplitude and phase of the modulated wavefronts emerging from the guidestar region continuously operating in the Raman-Nath regime. As the IOPC scheme naturally converges to the maximally transmitting eigenchannel profile, one could use the position of the guidestar within the disorder to channelize the maximal transmission through the tagged region. The associated code developed in MATLAB® is provided as an open source (The MIT License) package. The code package is referred by the acronym STAR-FDTD where STAR stands for Space-Time modulated Acousto-optic guidestaR.