Since the spindle bearing systme is the main source of the total cutting point compliance of machine tool structures, in this work, the static and dynamic characteristics of the spndle bearing systme driven by the gear located on the bearing span were investigated using analytical and finite elemtn methods to improve the performance of the spindle bearing system. Based on the theretical results, a specially designed prototype spindle bvearing systme was manufactured. Using the manufactured spindle bearing system, the static and dynamic characteristics were measured. From the comparison of the experimental results with the theoretical results, it was found that the finite elemetn method predicted well the static and dynamic characteristics of the spindle bearing system.