A method is presented for modeling the wideband, frequency domain electromagnetic (EM) response of a three‐dimensional (3‐D) earth to dipole sources operating at frequencies where EM diffusion dominates the response (less than 100 kHz) up into the range where propagation dominates (greater than 10 MHz). The scheme employs the modified form of the vector Helmholtz equation for the scattered electric fields to model variations in electrical conductivity, dielectric permitivity and magnetic permeability. The use of the modified form of the Helmholtz equation allows for perfectly matched layer ( PML) absorbing boundary conditions to be employed through the use of complex grid stretching. Applying the finite difference operator to the modified Helmholtz equation produces a linear system of equations for which the matrix is sparse and complex symmetrical. The solution is obtained using either the biconjugate gradient (BICG) or quasi‐minimum residual (QMR) methods with preconditioning; in general we employ the QMR method with Jacobi scaling preconditioning due to stability. In order to simulate larger, more realistic models than has been previously possible, the scheme has been modified to run on massively parallel (MP) computer architectures. Execution on the 1840‐processor Intel Paragon has indicated a maximum model size of 280 × 260 × 200 cells with a maximum flop rate of 14.7 Gflops. Three different geologic models are simulated to demonstrate the use of the code for frequencies ranging from 100 Hz to 30 MHz and for different source types and polarizations. The simulations show that the scheme is correctly able to model the air‐earth interface and the jump in the electric and magnetic fields normal to discontinuities. For frequencies greater than 10 MHz, complex grid stretching must be employed to incorporate absorbing boundaries while below this normal (real) grid stretching can be employed.