This paper presents theoretical and experimental investigations into the dynamic modelling and characterisation of a two-link flexible manipulator incorporating payload. A planar two-link flexible manipulator that moves in a horizontal plane is considered. A dynamic model of the system is developed using a combined Euler-Lagrange and assumed mode methods, and simulated using Matlab. Experiments are performed on a lab-scaled two-link flexible manipulator for validation of the dynamic model and characterisation of the system. Two system responses namely hub angular position and deflection responses at both links are obtained and analysed in time and frequency domains. The effects of payload on the dynamic characteristics of the flexible manipulator are also studied and discussed. The results show that a close agreement between simulation and experiments is achieved demonstrating an acceptable accuracy of the developed model.