In this study, lateral vibration analysis has been conducted on a propulsion and lift shafting system for an air cushion vehicle using ANSYS code. The shafting system is totally flexible multi-elements system including air propeller, aluminum alloy of lift fan and thin walled shaft with flexible coupling. The analysis included the lateral natural frequencies, mode shapes and harmonic analysis of the shafting system taking into account three-dimensional models for propulsion and lifting shaft system. In case of ACV the yawing and pitching rate of craft will be quite high. During yawing and pitching of craft significant gyroscopic moment will be applied to the shafting and will generate high amplitude of lateral vibration. So, such a shafting system has very intricate lateral vibrating characteristics and natural frequencies of shafting must be avoided in the range of operating revolution. The control of lateral vibration is included in this study.