The objective of this paper is to present a method of dynamic analysis of the steering system of a passenger car with McPherson suspension. The links of the system are modelled as rigid bodies; however, the method enables flexibility of the steering shaft of the car to be taken into account. The geometry of the system is described by using homogenous transformations. Equations of motion are derived on the basis of the Lagrange equations. In the method proposed, the closed loop oflinks is cut at selected joints and suitable reaction forces are introduced. Dry friction occurring in the steering system is reduced to the prismatic joint between the steering rack and guide. The method can be used in design and optimization of steering systems of passenger cars with McPherson suspension.