The Climate System Model (CSM) consists of atmosphere, ocean, land, and sea-ice components linked by a flux coupler, which computes fluxes of energy and momentum between components. The sea-ice component consists of a thermodynamic formulation for ice, snow, and leads within the ice pack, and ice dynamics using the cavitating-fluid ice rheology, which allows for the compressive strength of ice but ignores shear viscosity. The results of a 300-yr climate simulation are presented, with the focus on sea ice and the atmospheric forcing over sea ice in the polar regions. The atmospheric model results are compared to analyses from the European Centre for Medium-Range Weather Forecasts and other observational sources. The sea-ice concentrations and velocities are compared to satellite observational data. The atmospheric sea level pressure (SLP) in CSM exhibits a high in the central Arctic displaced poleward from the observed Beaufort high. The Southern Hemisphere SLP over sea ice is generally 5 mb lower than observed. Air temperatures over sea ice in both hemispheres exhibit cold biases of 2‐4 K. The precipitationminus-evaporation fields in both hemispheres are greatly improved over those from earlier versions of the atmospheric GCM. The simulated ice-covered area is close to observations in the Southern Hemisphere but too large in the Northern Hemisphere. The ice concentration fields show that the ice cover is too extensive in the North Pacific and subarctic North Atlantic Oceans. The interannual variability of the ice area is similar to observations in both hemispheres. The ice thickness pattern in the Antarctic is realistic but generally too thin away from the continent. The maximum thickness in the Arctic occurs against the Bering Strait, not against the Canadian Archipelago as observed. The ice velocities are stronger than observed in both hemispheres, with a consistently greater turning angle (to the left) in the Southern Hemisphere. They produce a northward ice transport in the Southern Hemisphere that is 3‐4 times the satellite-derived value. Sensitivity tests with the sea-ice component show that both the pattern of wind forcing in CSM and the air-ice drag parameter used contribute to the biases in thickness, drift speeds, and transport. Plans for further development of the ice model to incorporate a viscousplastic ice rheology are presented. In spite of the biases of the sea-ice simulation, the 300-yr climate simulation exhibits only a small degree of drift in the surface climate without the use of flux adjustment. This suggests a robust stability in the simulated climate in the presence of significant variability.