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The two‐dimensional discrete Huygens’ modelling or TLM simulation is presented for the TE electromagnetic field problems. The TLM element or node with variable traveling speed and characteristic impedance is applied to several practical problems including scattering at the edge of a wall and over periodic grids or grooves, wave propagation along a dielectric structure, and a mode coupling between two parallel optical waveguides. The TLM solutions are compared with the theoretical ones or the results of other numerical methods and reasonable agreement is achieved.