On microscopic level propagation of EM waves in materials is described by the same vacuum Maxwell equations (from which the wave equation is trivially derived). However Macroscopic electrodynamics deals with the case where we are interested in length scales much bigger than inter-atomic distances: in this case one has to account for the polarization and magnetization, which are electric and magnetic field induced in the material averaged over a physically small volume - i.e., a volume that is much bigger than the inter-atomic space, but which is still very small on the scale of our problem. This is not unlike describing liquids or gases in terms of pressure and density, which is why macroscopic electrodynamics is sometimes called electrodynamics of continuous media.
One then reformulates Maxwell equations in terms of auxiliary fields:
$$
\mathbf{D}=\varepsilon_0\mathbf{E}+\mathbf{P},\\
\mathbf{H}=\frac{\mathbf{B}}{\mu_0}-\mathbf{M},
$$
where $\mathbf{P}$ and $\mathbf{M}$ are the polarization and the magnetization induced in the media. Maxwell equations are then incomplete - they need to be complemented by the material/constitutive relations that relate the auxiliary fields (or polarization and magnetization) to the true fields.
In the simplest case of isotropic and homogeneous medium, these relations are often taken to be
$$
\mathbf{D}=\varepsilon\mathbf{E}, \mathbf{H}=\frac{\mathbf{B}}{\mu}.
$$
However, one can consider more complicated cases, such as arbitrary isotropic linear medium, where we take
$$
\mathbf{P}(\mathbf{r},t)=\varepsilon_0\int d^"\mathbf{r}'dt'\chi_e(\mathbf{r},t;\mathbf{r}',t')\mathbf{E}(\mathbf{r}',t'),\\
\mathbf{M}(\mathbf{r},t)=\frac{1}{\mu_0}\int d^"\mathbf{r}'dt'\chi_m(\mathbf{r},t;\mathbf{r}',t')\mathbf{B}(\mathbf{r}',t').
$$
Here $\chi_e,\chi_m$ are called electric and magnetic susceptibilities. This formulation already allows to include the dispersion as asked in the OP. (In a homogeneous medium $\chi_j(\mathbf{r},t;\mathbf{r}',t')=\chi_j(\mathbf{r}-\mathbf{r}',t-t')$ and the Maxwell equations greatly simplify after Fourier transform.)
Further levels of complexity may include anisotropy (by making the susceptibilities to be matrices), as well as non-linearity (by making the susceptibilities themselves dependent on the fields or by introducing higher-order non-linear susceptibilities.)