An algorithm is developed for computing proton dose distributions in the therapeutic energy range (100-250 MeV). The goal is to provide accurate pencil beam dose distributions for two-dimensional or three-dimensional simulations of possible intensity-modulated proton therapy delivery schemes. The algorithm is based on Molière's theory of lateral deflections, which accurately describes the distribution of lateral deflections suffered by incident charged particles. The theory is applied to nonuniform targets through the usual pencil beam approximation which assumes that all protons from a given pencil beam pass through the same material at each depth. Fluence-to-dose conversion is made via Monte Carlo calculated broad-field central-axis depth-dose curves, which accounts for attenuation due to nuclear collisions and range straggling. Calculation speed is enhanced by using a best-fit Gaussian approximation of the radial distribution function at depth. Representative pencil beam and spread-out Bragg-peak computations are presented at 250 MeV and 160 MeV in water. Computed lateral full-widths-at-half-maximum's in water, at the Bragg peak, agree with the expected theoretical lateral values to within 1% at 160 MeV and to within 3% at 250 MeV. This algorithm differs from convolution methods in that the effect of the depth of any inhomogeneities in density or atomic composition are accounted for in a rigorous fashion. The algorithm differs from Fermi-Eyges based methods by accounting in a rigorous way for the effect of nonsmall-angle scattering and screening due to atomic electrons. The computational burden is only slightly greater than that expected using the less-rigorous Fermi-Eyges theory.