Lightning electromagnetic fields in the presence of conducting (grounded) structure having a height of 60 m and a square cross-section of 40 m × 40 m within about 100 m of the observation point are analyzed using the 3D finite-difference time-domain (FDTD) method. Influence of the conducting structure on the two orthogonal components of magnetic field is analyzed, and resultant errors in the estimated lightning azimuth are evaluated. Influences of ground conductivity and lightning current waveshape parameters are also examined. When the azimuth vector passes through the center of conducting structure diagonally (e.g., azimuth angle is 45°) or parallel to its walls (e.g., azimuth angle is 0°), the presence of conducting structure equally influences Hx and Hy, so that Hx/Hy is the same as in the absence of structure. Therefore, no azimuth error occurs in those configurations. When the conducting structure is not located on the azimuth vector, the structure influences Hx and Hy differently, with the resultant direction finding error being greater when the structure is located closer to the observation point.