The objectives of the study are to present simple physical and mathematical models of liquid fuel in the tank of an aerospace vehicle such launch vehicle or missile and to investigate its dynamic stability for a parameter space. In this paper, liquid in the container is modeled as multi-mass system subject to parametric excitations, and a stability diagram for determination of stable-unstable regions of the motion is obtained by using an analytical method. Also, computer simulations are conducted at various parameter points to verify the analytical results, and time histories of motion are compared to explain the effect of variation of parameters of the system.