PWM control is a kind of nonlinear control. The merits of PWM control of hydraulic equipment are the robustness of the high speed on-off valve and its low price. And it is easily implemented to hydraulic equipments with microcomputer. The high speed on-off valve is directly digitally controlled without any D/A converter. The objectives of this study is to analyze the limit cycle which regularly appear in the position control system using high speed on-off valve, and to give a criterion for the stability of this system. To do this, the nonlinear characteristics of PWM and cylinder friction of this system are described by harmonic linearization and the effects of parameter variations to the system stability are examined theoretically and experimentally. Consequently, the availability of the proposed method is confirmed well.