Dynamic performance of multiwound foil bearings with the effects of foil local deflection is investigated. The foils, separated and supported by projections on the ir surface are treated as thin plates. Deflections of the foils are solved with a finite element model. The air pressure is calculated with the Reynolds' equation by treating the lubricant as an isothermal idea gas. The effects of foils are simulated with the deflection of top foil added to the film thickness. A finite difference computer program is developed to solve the Reynolds equation and the elastic deflection equation, simultaneously. Perturbation method is used to determine the dynamic coefficients. The effects of foil deflection is discussed by comparing the dynamic coefficients of a foil bearing and a rigid bearing. Experimental data from a test rig supported by two multiwound foil bearings are used to validate this numerical solution.