In this study, system modeling and dynamic analysis of crane are conducted. Especially, among many different kinds of a crane system, the issues on crane operating problems installed on the vessel are considered. As well known, marine systems including cranes are exposed to various disturbances such as vessel motions, hydrodynamic forces, wave and wind attack, etc. In order to analysis the system dynamic with environmental conditions, the authors derived the nonlinear dynamic model of offshore crane and derived a linear model which is used for designing the control system. Using the obtained nonlinear and linear models, simulations were conducted to evaluate the usefulness of the obtained models. By simulation and result evaluation, the usefulness of the linear model, which presents the dynamics, is effectively verified.