A newly developed global Finite Element Sea Ice-Ocean Model (FESOM) is presented. The ocean component is based on the Finite Element model of the North Atlantic (FENA) but has been substantially updated and extended. In addition to a faster realization of the numerical code, state-of-the-art parameterizations of subgrid-scale processes have been implemented. A Redi/GM scheme is employed to parameterize the effects of mesoscale eddies on lateral tracer distribution. Vertical mixing and convection are parameterized as a function of the Richardson number and the Monin-Obukhov length. A finite element dynamic-thermodynamic sea ice-model has been developed and coupled to the ocean component. Sea ice thermodynamics have been derived from the standard AWI sea ice model featuring a prognostic snow layer but neglecting internal heat storage. The dynamic part offers the viscous-plastic and elastic-viscous-plastic rheologies. All model components are discretized on a triangular/tetrahedral grid with a continuous, conforming representation of model variables. The coupled model is run in a global configuration and forced with NCEP daily atmospheric reanalysis data for 1948-2007. Results are analysed with a slight focus on the Southern Hemisphere. Many aspects of sea ice distribution and hydrography are found to be in good agreement with observations. As in most coarse-scale models, Gulf Stream transport is underestimated, but transports of the Kuroshio and the Antarctic Circumpolar Current appear realistic. The seasonal cycles of Arctic and Antarctic sea ice extents and Antarctic sea ice thickness are well captured; long- and short-term variability of ice coverage is found to be reproduced realistically in both hemispheres. The coupled model is now ready to be used in a wide range of applications. © 2008 Elsevier Ltd. All rights reserved.