The paper presents an analytical and computer-aided analysis of the dynamic characteristics of spur gear transmissions. The dynamic analysis of geared systems is difficult to accurately investigate due to the nonlinear characteristics accounting for periodic changes of tooth stiffness and gear backlash. An improved model to calculate the cyclic mesh stiffness of gear pairs is developed in order to obtain reliable data for the prediction of gear dynamic behavior. The relation between gear ratio and stiffness function is presented. A comparative study has been performed to investigate the effects of the mesh stiffness variation and the backlash between contacting teeth on the dynamic characteristics of gear systems.