The theoretical method is developed to investigate the vibration characteristics of the sloshing and bulging mode for the circular cylindrical storage tank with an annular plate on free surface. The cylindrical tank is filled with an inviscid and incompressible liquid. The liquid domain is limited by a rigid cylindrical surface and a rigid flat bottom. As the effect of free surface waves Is taken into account in the analysis, the bulging and sloshing modes are studied. The solution for the velocity potential of liquid movement is assumed as a suitable harmonic function that satisfies Laplace equation and the relevant boundary conditions. The Rayleigh-Ritz method is used to derive the frequency equation of the cylindrical tank. The effect of Inner-to-outer radius ratio and thickness of annular plate and liquid volume on vibration characteristics of storage tank is studied. The finite element analysis is performed to demonstrate the validity of present theoretical method.