We propose a three-dimensional (3D) haptic modeling system that enables a user to create 3D models as though he/she is drawing pictures in mid-air and touch the created models. In the proposed system, we use our ungrounded pen-shaped kinesthetic display as the interface. The kinesthetic display device can generate kinesthetic sensations on the user's fingers. Because our system does not use mechanical linkages, the user can freely move his/her hand and feel the sensation of touching virtual objects. In the proposed system, the user can easily and intuitively create various 3D shapes by drawing closed curves in air using the device. The created shapes are generated in a physics-based simulation environment and are displayed as 3D images. Therefore, the user can touch and see the drawn shapes as though they exist in reality.