The modelling of the dynamic processes in milling and the determination of chatter-free cutting conditions are becoming increasingly important in order to facilitate the effective planning of machining operations. In this study, a new chatter stability criterion is proposed, which can be used for a time domain milling process simulation and a model-based milling process control. A predictive time domain model is presented for the simulation and analysis of the dynamic cutting process and chatter in milling. The instantaneous undeformed chip thickness is modelled to include the dynamic modulations caused by the tool vibrations so that the dynamic regeneration effect is taken into account. The cutting force is determined by using a predictive machining theory. A numerical method is employed to solve the differential equations governing the dynamics of the milling system. The work proposes that the ratio of the predicted maximum dynamic cutting force to the predicted maximum static cutting force can be used as a criterion for the chatter stability. Comparisons between the simulation and experimental results are given to verify the new model.