A new cochlear modeling technique has been developed in which the number of assumptions required in model formulation is significantly less than in previous modeling studies. The main new feature of the method is that it allows individual cellular and membrane components of the organ of Corti to be embedded within the model fluid in their true structural positions, with connections to neighboring elements reflecting anatomical geometry. The cochlea is divided into a three‐dimensional finite element (3‐D FE) network of nodes, connected by branches representing the local mechanical properties. The model system of simultaneous equations, obtained by applying continuity at each node, is solved iteratively using a variant of the conjugate gradient method. Here the formulation and implementation of the 3‐D FE method are described. Force generation by outer hair cells is included and results are presented which demonstrate the effect of tectorial membrane and Deiters’ cell mechanical properties on the effectiveness of the cochlear amplifier.