Using the effective refractive index method, propagation characteristics of a metal-clad planar waveguide was studied. In the metal-clad waveguide silver was considered as a dielectric with negative dielectric constant. Finite-difference time-domain (FDTD) method was used to study arbitrary discontinuities in waveguide structures. Results of FDTD simulation and optimization for junctions in metal-clad waveguides are presented.