The Caspian Sea has a unique ecosystem that consists of endemic species. The deterioration of the unique ecosystem has become increasingly worrisome since a wide variety of pollutants have been released into the water. Water circulation plays a key role in advection and diffusion of these pollutants. In the present study, water circulation and thermohaline structures in the Caspian Sea were analyzed by means of a three dimensional numerical simulation. The effects of meteorological changes, river inflow, and an icing event were taken into account as boundary conditions. Numerical simulation was carried out for 20 years to achieve stable seasonal variations in model variables. As a result, the horizontal distributions of water temperature and salinity could be reproduced; the gradient of water temperature in the northsouth direction, the decrease in water temperature along the east coast of the middle Caspian Sea due to coastal upwelling, and low salinity in the northern Caspian Sea. The icing event kept the water temperature in the northern Caspian Sea from decreasing to an unrealistic value. The observed cyclonic gyres were basically formed by the density-driven current due to thermohaline structure.