There are many types of speed reducer for industrial uses. However the cycloid speed reducer is widely used in manipulators based on excellent performance of low backlash, high reduction ratio and compact size. It is essential to use precision speed reducer for accuracy of position controls on robot systems and electric vehicles. The cycloid speed reducer has a eccentric rotating motion and offset to avoid some problem of assembly, so it has a disadvantage for vibration. In this paper, a multi-body dynamic model is developed for a cycloid speed reducer and the dynamic behaviors of the reducer are investigated. The cycloid speed reducer consists of cycloidal plate gears, housing gear, input shaft, output pin and shaft, and eccentric bearings. Using a CAD program, each component of cycloid reducer is modeled based on the offset and eccentric. Multi-body simulations using Recurdyn and test using a rig tester are performed. As a result, the pin reaction force and the amplitude of housing displacement are increased by the larger offset and smaller eccentric value of cycloid reducer.