Dynamic stability of a rotary oscillating cantilever beam is presented in this study. Using the stretch deformation instead of the conventional axial deformation, three linear partial differential equations are derived from Hamilton's principle and transformed into dimensionless forms. Stability diagrams of the first order approximate solutions are obtained by using the multiple scale perturbation method. The stability diagrams show that relatively large unstable regions exist near the combination of the first chordwise bending natural frequency and the first stretch natural frequency. This result is verified by using the generalized-a method.