Dynamic RAM disk

This invention relates in general to memory storage devices and, more particularly, to simulating a physical storage device using random access memory. A system and method dynamically allocate memory to a RAM disk. Upon a file transfer to the RAM disk, a device driver determines an amount of memory required by the RAM disk then requests the required amount of memory from a memory manager. As files are deleted from the RAM disk, the memory is released from the RAM disk by informing the memory manager of the addresses of the memory to be released. Sector freelists tracks each cluster of memory allocated to the RAM disk. When a sector becomes inactive, a corresponding bit in a sector freelist indicates the inactive status of the sector. When all of the sectors in a cluster are inactive, the cluster is released for the RAM disk.