In the present paper, we have investigated nonlinear interaction of three dimensional (3D) inertial Alfvén wave and perpendicularly propagating magnetosonic wave for low β-plasma (β m e /m i ). We have developed the set of dimensionless equations in the presence of ponderomotive nonlinearity due to 3D-inertial Alfvén wave in the dynamics of perpendicularly propagating magnetosonic wave. Stability analysis and numerical simulation has been carried out to study the effect of nonlinear coupling on the formation of localized structures and turbulent spectra, applicable to auroral region. The results reveal that the localized structures become more and more complex as the nonlinear interaction progresses. Further, we have studied the turbulent spectrum which follows spectral index (∼k −3.57 ) at smaller scales. Relevance of the obtained results has been shown with the observations received by various spacecrafts like FAST, Hawkeye and Heos 2.