In this study, to analyse the dynamic characteristics of a machine-tool spindle system, the spindle is mathematically represented by a Timoshenko beam including the internal damping of beam material, and each bearing by four bearing coefficients; stiffness and damping coefficients in moment and radial directions. And the dynamic compliance of the system is calculated by introducing the transfer matrix method, and the complex modal analysis method has been applied for the modal parameter identification. The influence of the bearing coefficients, material damping factor and bearing span on the dynamic characteristics of the system is parametrically examined.