In this paper, radiation characteristics of an arbitrarily oriented source in an anisotropic multilayered cylindrical structure are investigated by using the state transition matrix approach. Full wave transversal field equations in spectral domain are derived for anisotropic medium in cylindrical coordinates. These expressions are formed into a set of linear first order differential equations. The solution at each layer is expressed in terms of the state transition matrices which are evaluated numerically. Fields are matched at the interfaces. Far fields are evaluated asymptotically by using the steepest descents method. Numerical results are presented for a conducting cylinder coated with an anisotropic ferrite excited by Hertzian dipole. The effects of changing the bias magnetic field of the ferrite and the other medium parameters on the radiation characteristics are examined. Beam scanning, beam splitting, pattern shaping, beamwidth adjustment and control on cross polarized component can be obtained by varying the medium parameters.