AbstractElectric currents induced in conductive planetary interiors by time‐varying magnetospheric and ionospheric current systems have a significant effect on electromagnetic (EM) field observations. Complete characterization of EM induction effects is difficult owing to nonlinear interactions between the three‐dimensional electrical structure of a planet and spatial complexity of inducing current systems. We present, a general framework for time‐domain modeling of three‐dimensional EM induction effects in heterogeneous conducting planets. Our approach does not assume that the magnetic field is potential, allows for an arbitrary distribution of electrical conductivity within a planet, and can deal with spatially complex time‐varying current systems. The method is applicable to both data measured at stationary observation sites and satellite platforms, and enables the calculation of three‐dimensional EM induction effects in near real‐time settings.