An ice-ocean model is used to examine the behavior of the Arctic Ocean in response to recent changes in Arctic climate. The model shows that, starting about 1989, there has been a significant warming and salinification in the Arctic Ocean, in agreement with recent observations. The warming and salinification occur mainly in the upper ocean owing to a sustained increase of Atlantic inflow both at Fram Strait and, most significantly, via the Barents Sea. The increased incoming warm and salty Atlantic Water flushes out cold and fresh Arctic Water, thus increasing the temperature and salinity of the upper ocean and resulting in more oceanic heat flux to the mixed layer and ice cover. Concomitantly, the model shows a continuing decrease in ice volume beginning in 1987. ¿ 1998 American Geophysical Union