A consensus among climate change prediction scenarios using coupled ocean-climate general circulation models (GCMs) is enhanced warming in the Arctic. This suggests that changes in the Arctic sea ice cover may provide early indications of global warming. Observational evidence of substantial changes in the ice cover has been found recently using data from satellites and submarines. Satellite-borne microwave sensor data analyses have established a 3% per decade decrease in the spatial extent of the Arctic ice cover in the past 20 years. Moreover, a 7% per decade decrease in thicker, multi-year (perennial) ice pack has been revealed. This apparent transformation is corroborated by independent data that indicate substantial decreases in the average ice thickness from 3.1 to 1.8 m from the 1950s/1970s to the mid 1990s, averaging about 4 cm per year. It remains uncertain whether these observed changes are manifestations of global warming or are the result of anomalous atmospheric circulation--or both. However, if the recent trends continue, the Arctic sea ice cover could disappear this century, at least in summer, with important consequences for the regional and global ocean-climate system. This article synthesizes recent variability and trends in Arctic sea ice in the perspective of global climate change, and discusses their potential ramifications.