This paper analyzes stability and dynamic response of air-lubricated slider bearing in magnetic recording storage. Dynamic pressure distribution of air film is calculated in frequency domain by small perturbation method and finite difference method. Dynamic response of the slider spacing is obtained not only when the moving recording surface vibrates in the parallel mode but also when the recording surface has a small sinusoidal wave. Stability threshold and onset frequency are presented for three types of slider motion. Based on the analytical results design method for high performance slider and allowable level of the motion of the recording surface are discussed. Experimental agreement with analytical frequency response of slider spacing is obtained and the effect of suspension arm on slider dynamics is discussed.