In this paper, the development of a two-stage 500RT centrifugal refrigeration compressor is presented as an example to illustrate the consideration to the rotordynamics of rotating machinery. It presents the use of the rotordynamic analysis software, DyRoBeS, to determine the critical speeds for the pinion shaft of compressor. Also, the run-out of shaft is measured by a non-contact proximity displacement sensor before the chiller is operated. Finally, the analysis results are compared with the displacement spectrum of shaft measured by proximity sensors. The results showed that the difference between the calculated and measured natural frequency of shaft at rotating speed is about 1.3%.