A comprehensive dispersion analysis of the ADI-FDTD and a higher order ADI-FDTD method are presented. The dispersion error as a function of sampling rate, algorithm''''s time step size, and wave propagation angle are investigated. The results from analytical dispersionin vestigation are verified by those derived from numerical dispersion studies. For electrically small objects, the analyses show that the accuracy of the ADI-FDTD algorithms is strongly influenced by the time step size used in simulations. Based on the results of our dispersion analyses, a guideline for choosing appropriate time step size for practical applications is provided.