It is intended to develop an algorithm for dynamic simulation of a fast-acting solenoid valve. The coupled equations of electric, magnetic, and mechanical systems should be solved simultaneously in a transient nonlinear manner. The transient nonlinear electromagnetic field is analyzed by the Finite Element Method (FEM), which is coupled with nonlinear electronic circuitry. The dynamic movement of the solenoid valve is analyzed at every time step from the force balance acting on the plunger, which includes the electromagnetic force calculated from the Finite Element analysis as well as the elastic force by a spring and the hydrodynamic pressure force along the flow passage. Dynamic responses of the solenoid valves predicted by this algorithm agree well with the experimental results including bouncing effects.