Abstract.A new fully variational approach is studied for elliptic grid generation (EGG). It is based on a general algorithm developed in a companion paper [A. L. Codd, T. A. Manteuffel, and S. F. McCormick, SIAM J. Numer. Anal., 41 (2003), pp. 2197-2209 that involves using Newton's method to linearize an appropriate equivalent first-order system, first-order system least squares (FOSLS) to formulate and discretize the Newton step, and algebraic multigrid (AMG) to solve the resulting matrix equation. The approach is coupled with nested iteration to provide an accurate initial guess for finer levels using coarse-level computation. The present paper verifies the assumptions of the companion work and confirms the overall efficiency of the scheme with numerical experiments.Key words. least-squares discretization, multigrid, nonlinear elliptic boundary value problems AMS subject classifications. 35J65, 65N15, 65N30, 65N50, 65F10 DOI. 10.1137/S00361429024044181. Introduction. A companion paper [10] develops an algorithm using Newton's method, first-order system least squares (FOSLS), and algebraic multigrid (AMG) for efficient solution of general nonlinear elliptic equations. The equations are first converted to an appropriate first-order system, and an approximate solution to the coarsest-grid problem is then computed (by any suitable method such as Newton iteration coupled perhaps with direct solvers, damping, or continuation). The approximation is then interpolated to the next finer level, where it is used as an initial guess for one Newton linearization of the nonlinear problem, with a few AMG cycles applied to the resulting matrix equation. This algorithm repeats itself until the finest grid is processed, again by one Newton/AMG step. At each Newton step, FOSLS is applied to the linearized system, and the resulting matrix equation is solved using just a few V-cycles of AMG.In the present paper, we apply this algorithm to elliptic grid generation (EGG) equations. Grid generation is usually based on a map between a relatively simple computational region and a possibly complicated physical region. It can be used numerically to create a mesh for a discretization method to solve a given system of equations posed on the physical domain. Alternatively, it can be used to transform equations posed on the physical region into ones posed on the computational region, where the transformed equations are then solved. If the Jacobian of the transformation is positive throughout the computational region, the equation type is unchanged [12]. Actually, the relative minimum value of the Jacobian is important in practice because relatively small values signal small angles between the grid lines and large errors in approximating the equations [20].