This paper presents the results of three-dimensional simulation of the earth's magnetosphere. The simulation region is 100 RE ≤X≤30 RE, ‖Y‖≤40 RE and ‖Z‖≤40 RE with solar wind parameters Bz =-2&ggr;, density of 5 cm-3 and velocity of 400 km s-1. The results show the existence of multiple x points in the tail. Strong plasma flow is seen to exist in both earthward and tailward directions during formation of neutral lines. The exact magnetic field and plasma behavior is found to be very position dependent.