A novel micro-machined diamagnetic stable-levitation system (MDSLS) which is composed of a free permanent magnetic rotor, a ring lifting permanent magnet and two diamagnetic stabilizers was presented. The static and dynamic stable characters of MDSLS were analyzed. The coupled non-linear differential equations were used to describe six-degree-of-freedom motion of the levitated rotor, and the equivalent surface current and combined diamagnetic image current method were utilized to model the interaction forces and torques between the lifting permanent magnet and rotor permanent magnet and also between the rotor permanent magnet and diamagnetic substrates. Because of difficulty to get analytical solution, the numerical calculation based on Runge-Kutta method was used to solve the dynamic model. The vibration frequencies were identified by fast Fourier transform (FFT) analysis. According to their resonance characteristics and parameters, the translational and angular dynamic stiffness were also calculated. The results show that the levitation of the rotor in MDSLS is stable, and the MDSLS is potential for the application in levitation inertial sensor.