Abstract: A limited area coupled atmosphere-ocean dynamical model is developed and used to simulate tropical Pacific warm events associated with ENSO. The model is formulated with anomalous perturbation equations about a basic state derived from monthly mean climatologies of surface winds, SSTs and ocean currents. The atmosphere model is linear and in steady-state, with heating parameterized in terms of SST which represents the ocean releasing latent heat to atmosphere, and also considers the heating processes of low-level moisture convergence as feedback effects in the tropinal atmosphere, for the treatment of nonlinearity in feedback heating especially improves the model simulation ability. The ocean model consists of dynamical equations and temperature equation. The dynamics of the model describe as a single layer reduced gravity shallow water mode, plus a frictional surface layer, make the thermodynamics more complete. The evolution equation for the anomalous SST gives three-dimensional temperature advection, and the vertical advection, in particular plays a crucial role, leading to exact estimate of the surface layer heat budget and as realistic SST anomaly fields as possible. A set of numerical experiments are tested for reproduction of the prominent feature of ocean-atmosphere coupled system oscillation during 1982/1983 EI Nino event. A series of sensitivity studies are also made. Comparing with observation, the model results are encouraging.