A new three-dimensional chaotic system is reported in this paper, which is different from the Lorenz and Chen systems. This new system contains five system parameters and two quadratic cross-product terms. The basic dynamic properties of the new system are investigated via theoretical analysis, numerical simulation, Lyapunov exponent spectrum, bifurcation diagrams, Lyapunov dimension and Poincare diagrams. The different dynamic behaviors of the new system are analyzed when each system parameter is changed. Finally, the chaotic circuit is designed and realized by the Multisim software. It confirms that the chaotic system can be achieved.