In this study the implementation of the aerosol indirect effect in the 23-layer Goddard Institute for Space Studies (GISS) Global Climate Middle Atmosphere Model III is described. Explicit dependence on cloud droplet number concentrations (Nc) is introduced in the calculations of cloud optical depths and autoconversion rates in liquid-phase stratiform clouds to account for both first and second indirect effects. To diagnose Nc, correlation with concentrations of aerosol soluble ions is developed separately for each model grid and in each month, to reflect seasonal and spatial variations in aerosol-cloud interactions. Based on estimates of pre-industrial, present-day (year 2000), and future (year 2100) concentrations of sulfate, nitrate, ammonium, sea salt, and organic aerosols from the fully coupled Caltech unified model, corresponding offline, monthly averaged Nc were derived and applied to equilibrium climate simulations. Modeled present-day global distributions of Nc, droplet size, cloud cover, and radiative balance are in good agreement with satellite-retrieved climatology. A global anthropogenic indirect forcing of -1.7 W m-2, with a decrease in mean droplet radius of 0.8 um, and an increase in total liquid water path of 0.2 g cm-2, from pre-industrial to year 2000 is estimated. Future climate responses to aerosol direct and indirect effects are also analyzed and compared to previous studies that consider chemistry-aerosol-climate coupling, revealing the influences of this coupling on climate predictions.