A rational reduction method using modal analysis is developed in order to analyze accurately stability of a large-scale system with local parametric excitation. Nodes without parametric excitation are transformed into the modal coordinates, and the modes with significant effect on computation accuracy of the stability analysis are extracted. On the other hands, the remaining modes with small effect are appropriately approximated and are eliminated. The very accurate low-dimensional model is constructed by these procedures. The effectiveness of this method is verified from the computational results.