A new transfer matrix method for the dynamic response analysis of large dynamic systems is proposed. This method, named as discrete time-transfer matrix method (DT-TMM), is based on the conventional transfer matrix methods and the numerical solution procedures of differential equations. It combines the advantages of both of these methods. Formulation of the method as well as some numerical examples to check the viability of the method are given. Also identified are several possible areas of applications as well as the possible sources of errors.