In this paper we apply nonlocal kinetic coupling to the dynamic mean-field density functional method, which is derived from generalized time-dependent Ginzburg-Landau theory. The method is applied to the mesoscopic dynamics of copolymer melts, which was previously simulated using a local coupling approximation. We discuss the general theory of time evolution of density variables with general kinetic coefficients developed by Kawasaki and Sekimoto, and especially the limits of the theory that yield the local coupling approximation, the collective Rouse dynamics model, and the reptation dynamics model. We show bow a simple approximation to the Rouse dynamics model leads to a feasible numerical model that includes the essential physical features of nonlocal kinetic coupling. This results in a dynamic equation for the external potential instead of the density which allows us to perform calculations of microphase separation in copolymer melts with increased relevance to experimental results. As may be expected from a numerical model that includes nonlocal kinetic coupling, the numerical results show an increased computational efficiency, less defects in the final morphology, and a faster increase of the order parameter compared to local kinetic coupling. (C) 1997 American Institute of Physics.