A three-dimensional hybrid code has been developed to study the interaction between small dense plasma clouds and an ambient plasma. The primary advantage of this code is a seamless interface between kinetic particles (plasma cloud) and an MHD fluid (ambient plasma). This interface provides momentum coupling between two distinct ion populations. As a preliminary test of our code, we have simulated the first 3 minutes of the December 1984 AMPTE artificial comet. The results show good agreement with observations of the magnetic field distribution as well as the lateral motion of the comet head. Examples of other applications for this code include comets, coronal mass ejections, Io's plasma torus, and plasma injection experiments. ¿ 1999 American Geophysical Union