All the rotor blades in turbo-machinery, includingturbojet engines and turbo-generators, have vibrationproblems. The blades are damaged because of vibrationscaused by flutter or forced response. Generally, theshrouded design of the turbine blades with tip shroud ormid-span shroud is used to raise the structural dampingand strength of the rotor blades. This research is primarilyfocused on vibration phenomenon of steam turbine’sshrouded rotor blades. A complete system approach willbe set up to study the main mechanism of shrouded rotorblade vibration, and to analyze the flutter boundary ofTaipower steam turbine rotor blades under differentoperating conditions. The research will start with thedynamic structural properties of the blades includingnatural frequencies and mode shapes. These propertiesalong with flow fields, will be used to calculate theunsteady steam load caused by structural movement. Inaddition, because the design of shrouded rotor blades willcause the entire rotor into system mode shapes, it isnecessary to use cyclic symmetry along with the modalflutter analysis system to calculate the aero damping ofthe shrouded dynamic blade system and to determine itsflutter instability.