A three-dimensional simulation model was developed to study magnetosphere-ionosphere coupling in the auroral region. We adopted one-fluid MHD equations to model the magnetosphere, and current density continuity equations were solved consistently to model the ionosphere. In the preliminary simulation runs described here, the electrodynamics of region 1 field-aligned currents were modeled. Initially, the electric field is taken to be in the magnetospheric equatorial plane. Alfv¿n waves then propagate down to the ionosphere, accompanying a field-aligned current and exciting the electrostatic potential in the ionosphere by electrodynamic coupling. The results of the preliminary runs directly correspond with the fundamental characteristics of global magnetosphere-ionosphere coupling. These characteristics include an ionospheric electrostatic potential which varies in its development in time, depending upon the ratio of ionospheric resistance to magnetospheric impedance, the flowing of field-aligned currents into the ionosphere on the dawnside and out on the duskside, and the distribution along the geomagnetic field of the amplitude of the field-aligned current density in proportion to the field intensity.