This paper presents a nonlinear approach with regard to the dynamic stability of an isotropic metal foam circular cylindrical shell subjected to combined loads. The mechanical properties of metal foam vary in the thickness direction. Combinations of external pressure and axial load are taken into account. A nonlinear hypothesis of deformation of a plane cross section is formulated. The system of partial differential equations of motion for a shell is derived on the basis of Hamilton’s principle. The system of equations is analytically solved by Galerkin’s method. Numerical investigations of dynamic stability for the family of cylindrical shells with regard to analytical solution are carried out. Moreover, finite element model analysis is presented, and the results of the numerical calculations are shown in figures.