Satellite observations in recent years have confirmed that the plasma sheet boundary layer is a permanent feature of the Earth's magnetotail located between the lobe and central plasma sheet during both quiet and active magnetic periods. Distinct features of the boundary layer include field aligned ion beams and intense electrostatic emissions known as broadband electrostatic noise. Since the plasma sheet boundary layer is a spatial feature of the magnetotail, within it will occur thermal mixing of the resident warm boundary layer plasma with inflowing (convecting) cold ionospheric plasma. A theoretical study involving linear theory and nonlinear numerical particle simulations is presented which examines ion beam instabilities in the presence of a thermally mixed hot and cold background plasma. It is found that the free energy in the ion beams can heat the cool ionospheric plasma to ambient plasma sheet boundary layer temperatures via broadband electrostatic noise. These results, along with recent observational reports that ionospheric outflow can account for measured plasma sheet densities, suggest that the ionospheric role in plasma sheet dynamics and content may be as large as the solar wind. ¿ American Geophysical Union 1990