Magnetoencephalography was used to investigate exogenously stimulated oscillatory activity between cortex and thalamus resulting from clicks presented binaurally at the rate of 40 Hz. Analysis of the responses demonstrated activation of left and right auditory cortex, medial parietal cortex, thalamus, and cerebellum. Cross-correlations of the source waveforms revealed synchronicity between the auditory cortex sources (r > 0.9), auditory cortex and thalamic sources (r > 0.7), and thalamic and parietal sources (r > 0.7). The 40 Hz response in auditory cortex occurred 6 ms after thalamic activation. Supporting earlier findings, the results demonstrate the networks involved in the maintenance of 40 Hz auditory steady-state response and will prove useful for the interrogation of dysfunction in disorders demonstrating thalamocortical dysrhythmia, such as schizophrenia, Parkinson's disease, and depression.