Dynamic stability of an axially oscillating cantilever beam is investigated in this paper. The equations of motion are derived and transformed into non-dimensional ones. The equations include harmonically oscillating parameters which originate from the motion-induced stiffness variation. Using the equations, the multiple scale perturbation method is employed to obtain a stability diagram. The stability diagram shows that relatively large unstable regions exist around the frequencies of the first bending natural frequency, twice the first bending natural frequency, and twice the second bending natural frequency. The validity of the diagram is proved by direct numerical simulations of the dynamic system.