The GMDH(Group Method of Data Handling) is a useful data analysis technique for identification of nonlinear complex systems. Therefore, in this paper the application method of GMDH algorithm for modeling nonlinear dynamic systems is proposed. The identification of dynamic systems by using GMDH consists of applying a set of input/output data and computing the necessary coefficient set dynamically. Also, in this paper, by reducing sequentially the criterion which can adopt or reject the data, a method to prevent excessive computation that is a disadvantage of GMDH is proposed.