We show that the magnetic helicity associated with fluctuations in homogeneous incompressible magnetohydrodynamic (MHD) turbulence with a mean magnetic field decays in time because of nonlinear processes. Evidence is obtained numerically, by use of both dissipative and nondissipative spectral method simulations. The described effect stands in contrast to expectations based on studies of MHD turbulence without an applied mean field, in which magnetic helicity is transferred nonlinearly to long wavelengths and is preserved in time because of selective decay when dissipation is present. The process of nonlinear decay is described in terms of a generalized ideal helicity invariant and is characterized by the transient production of a mean induced electric field aligned with the applied magnetic field, an effect reminiscent of the alpha effect in dynamo theory. A simple phenomenological model for the decay process is proposed. ¿ American Geophysical Union 1994