An energy‐conserving model of magnetohydrodynamic turbulence is described that predicts both mode coupling and turbulent dissipation. The dissipation takes the form of anomalous resistivity and viscosity due to turbulent magnetic fields. The model predicts a dual cascade of energy to large wavenumbers and magnetic flux to small wavenumbers. Turbulent rearrangement of equilibrium magnetic shear generates resonant fluctuations via a mixing length process. The effect of the turbulence on the disruptive instability in tokamaks is discussed.