As a popular solution for mooring an FPSO (Floating Production, Storage and Offloading) permanently in shallow water, the soft yoke mooring system has been widely used in ocean oil production activities in the Bohai Bay of China. In order to simulate the interaction mechanism and conduct dynamic analysis of the soft yoke mooring system, a theoretical model with basic dynamic equations is established. A numerical iteration algorithm based on error estimation is developed to solve the equations and calculate the dynamic response of the mooring system due to FPSO motions. Validation is conducted by wave basin experimentation. It is shown that the numerical simulation takes only a few iteration times and the final errors are small. Furthermore, the calculated results of both the static and dynamic responses agree well with those ones obtained by the model test. It indicates that the efficiency, the precision, the reliability and the validity of the developed numerical algorithm and program are rather good. It is proposed to develop a real-time monitoring system to further monitor the dynamic performance of the FPSO with a soft yoke mooring system under various real sea environments.