For the in-line three cylinder engine whose crankshaft has a phase of 120 degrees, the total sum of unbalanced inertia forces occurring in each cylinder will be counterbalanced among three cylinders. However, parts of inertia forces generated at the No.1 and No.3 cylinders will cause a primary moment about the No.2 cylinder. In order to eliminate this out-of-balance moment, a single balance shaft has been attached to the cylinder block so that the engine durability and riding comfort may be further improved. Accordingly, the forced vibration analysis of the in-line three cylinder engine must be implemented to meet the required targets at an early design stage. In this paper, a method to reduce noise and vibration in the 800cc, in-line three cylinder LPG engine is suggested using the multibody dynamic simulation. The static and dynamic balances of the in-line three cylinder engine are investigated analytically. The multibody dynamic model of the in-line three cylinder engine is developed where the inertia properties of connecting rod, crankshaft, and balance shaft are extracted from their FE-models. The combustion pressure within the No.1 cylinder in three significant operating conditions(1500rpm-full load, 4000rpm-full load and 7000rpm-no load)is measured from the actual tests to excite the engine. The vibration velocities at three engine mounts with and without balance shaft are evaluated through the forced vibration analysis. Obviously, it is shown that the vibration of the in-line three cylinder engine with balance shaft is reduced to the acceptable level .