This project is for the theoretical and simulation research in magnetospheric physics. The proposed research covers several topics including 3-D simulation of the reconnection process, plasmoids and kinks in the magnetospheric tail and pulsating aurora. In particular, 3-D simulation of reconnection is innovative and it is expected to yield new and significant results in this field. Previous research considered only two- dimensional MHD models of reconnection for the FTE (flux transfer events). The 3-D simulation is capable of showing longitudinal effects, thus enabling global studies of the reconnection process. Other aspects of FTE studies will include electron heat flux, evolution of helical flux tubes and ground signature. In the magnetotail region, development of saugage and tearing modes will be studied. A simulation code based on the electromagnetic particle code will be used for the study of the pulsating aurora. The results will explain several observed features of the pulsating auroras.