In this paper an initial dynamic analysis of the Libralato rotary engine prototype is conducted based on a joint engine model. Through the investigation of the Libralato thermodynamic cycle and the geometry characteristics of the engine structure, a multi-chamber core engine model is developed via GT-Power, a commercial software. The whole engine working volume is divided into 5 parts, including an intake chamber, a compression chamber, a combustion chamber, an expansion chamber and a virtual chamber which is used to correct the actual volume variation of the expansion chamber at the end of expansion stroke. The performance of the developed model is validated by experimental results. Then an initial analysis on the engine thermodynamic cycle, the engine operation characteristics and the gas exchange process is conducted. Furthermore, a multi-body mechanism model is designed to analyze the mechanical properties of the engine. By integrating the core engine model with the multi-body mechanical model, the dynamical characteristics of the engine with respect to the transient torque output and the velocity fluctuations are analyzed. The result of the modeling work could serve to benefit the future structure optimization and control strategy development of the prototype engine.