This paper presents a nonlinear dual-reciprocity boundary element method (DRBEM) for bioheat transfer in laser-induced thermotherapy. The nonlinearity stems from the dynamic changes of tissue thermophysical and optical properties and the blood perfusion rate during laser heating. The proposed DRBEM is coupled with a modified Monte Carlo method and the Arrhenius rate equation to investigate laser light propagation, bioheat transfer, and irreversible thermal damage in tumors. The computer code is justified by comparing the DRBEM results with the finite-difference results. The photothermal processes in interstitial laser thermotherapy with single or double laser fiber scattering applicators are chosen as the demonstrative examples. The dynamic nature, together with the unique advantages of "boundary-only" and excellent adaptability to complex anatomical geometries that the DRBEM method offers, makes the present nonlinear DRBEM a powerful tool for analysis and optimization of the parameters in laser surgical procedure.