This paper deals with the self-excited oscillation of a system that is controlled by a dynamic nonlinear fuzzy controller. The self-excited oscillation can be observed in the systems composed of nonlinear elements and its analysis is as important as that of stability in the design of nonlinear systems. by using the frequency transfer function analysis known as the describing function method in nonlinear control theory, the oscillation is theoretically predicted. First, the describing function of a dynamic fuzzy controller is derived and then, based on the derived describing fuction, self-excited oscillation of the system controlled by a dynamic fuzzy controller is predicted. To obtain the describing function of the dynamic fuzzy controller, a simple structure is assumed for the fuzzy controller.