In this paper, a new method for the stability analysis of a pipe conveying fluid which pulsates periodically is presented. The finite element model is formulated liking into consideration of the effects of the fluid pulsating in a pipe. The damping and stiffness matrices in the finite element equation vary with time due to pulsating fluid. Coupled effects of several harmonic components in the velocity of fluid to a pipe is discussed. A new unstable region appears which will not appear in the stability analysis of single pulsating frequency. A method to directly estimate the forced response of pipe is also discussed. The results presented in this paper are verified by the time domain analysis.