This works focuses on analyzing ac/dc hybrid power systems with large number of power converters that can be used for a variety of applications. A computer model of a sample power system is developed. The system consists of various detailed/switching models that are connected together to study the sample system dynamic behavior and to set conditions for safe operation. The stability analysis of this type of power systems has been approached using time domain simulations. There are three types of stability analysis that are studied: steady-state, small-signal analysis and large signal analysis. The steady-state stability analysis is done by investigating the nominal operation of the power electronics system proposed. The small-signal stability of this system is studied by running different parametric case studies. First, the safe values of the main system parameters are defined from the view of the stability of the complete system. Then, these different critical parameters of the system are mapped together to predict their influence on the system. The large signal stability is examined through the response of the power system to different types of transient changes. There are different load steps applied to the critical parameters of the system at the maximum or minimum stability boundary limit found by the mapping section. The maximum load step after which the system can recover and remain stable is defined. The other type of large signal stability analysis done is the study of faults. There are different faults to be studied; for example, over voltage, under voltage and over current.