Abstract: We study a manifestly gauge-invariant set of Schwinger-Dyson equations to determine the non-perturbative dynamics of the gluon and ghost propagators in d = 3 Yang-Mills theory. The use of the well-known Schwinger mechanism, in the Landau gauge leads to the dynamical generation of a mass for the gauge boson (gluon in d = 3), which, in turn, gives rise to an infrared finite gluon propagator and ghost dressing function. The propagators obtained from the numerical solution of these nonperturbative equations are in very good agreement with the results of SU(2) lattice simulations.