A dynamical coupled ice-ocean numerical model for the marginal ice zone (MIZ) is suggested and used to study upwelling dynamics in the MIZ. The nonlinear sea ice model has a variable ice concentration and includes internal ice stress. The model is forced by stresses on the air/ocean and air/ice surfaces. The main coupling between the ice and the ocean is in the form of an interfacial stress on the ice/ocean interface. The ocean model is a linear reduced gravity model. The wind stress exerted by the atmosphere on the ocean is proportional to the fraction of open water, while the interfacial stress ice/ocean is proportional to the concentration of ice. A new mechanism for ice edge upwelling is suggested based on a geostrophic equilibrium solution for the sea ice medium. The upwelling reported in previous models invoking a stationary ice cover is shown to be replaced by a weak downwelling due to the ice motion. Most of the upwelling dynamics can be understood by analysis of the divergence of the across ice edge upper ocean transport. On the basis of numerical model, an analytical model is suggested that reproduces most of the upwelling dynamics of the more complex numerical model.