In this paper, the effect of wear in the fluid film journal bearings on the dynamic stability of rotor bearing system has been studied depending on the development of new analytical equations for motion, instability threshold speed and steady state harmonic response for rotor with offset disc supported by worn journal bearings. Finite element method had been used for modeling the rotor bearing system. The analytical model is verified by comparing its results with that obtained numerically for a rotor supported on the short bearings. The analytical and numerical results showed good agreement with about 8.5% percentage error in the value of critical speed and about 3.5% percentage error in the value of harmonic response. The results obtained show that the wear in journal bearing decrease the instability threshold speed by 2.5% for wear depth 0.02 mm and 12.5% for wear depth 0.04 mm as well as decrease critical speed by 4.2% and steady state harmonic response amplitude by 4.3% for wear depth 0.02 mm and decrease the critical speed by 7.1% and steady state harmonic response amplitude by 13.9% for wear depth 0.04 mm.