An improved recurrence algorithm to calculate the scattering field of a multilayered sphere is developed. The internal and external electromagnetic fields are expressed as a superposition of inward and outward waves. The alternative yet equivalent expansions of fields are proposed by use of the first kind of Bessel function and the first kind of Hankel function instead of the first and the second kinds of Bessel function. The final recursive expressions are similar in form to those of Mie theory for a homogeneous sphere and are proved to be more concise and convenient than earlier forms. The new algorithm avoids the numerical difficulties, which give rise to significant errors encountered in practice by previous methods, especially for large, highly absorbing thin shells. Various calculations and tests show that this algorithm is efficient, numerically stable, and accurate for a large range of size parameters andrefractive indices.