This paper describes the application of the Method of Fundamental Solutions (MFS) to 3D eddy current problems. The most salient feature of the method is that by locating the source points on an auxiliary boundary the singular kernels encountered in most BEM are avoided. Therefore good results can be obtained. A* - PSI formulation is used in the 3D MFS. Furthermore, by eliminating the dependent coefficients from the equations, the unknowns are reduced by one on each node as compared to the conventional BEM. In so doing, a minimum order formulation is obtained. Two examples of the application of the approach are given in this paper. Results are compared with analytical solutions as well as the conventional BEM solutions.