This paper presents a comprehensive dynamic model that simulates infeed centerless grinding processes and predicts their instability-related characteristics. The new model has the unique ability of accurately predicting the coupled chatter and lobing process of a multi-degree of freedom and two-dimensional centerless grinding system by considering its critical issues. First, the model considers the complete two-dimensional kinematics, dynamics, surface profiles, and the geometrical interactions of the workpiece with the grinding wheel, regulating wheel, and supporting blade. Second, a two-dimensional distributed grinding force model along the contact length is adopted and modified for centerless grinding processes as a function of normalized uncut chip thickness. The forces of the work holding system are determined by balancing the grinding force and accordingly the work holding instability can be identified as well. Third, a two-dimensional contact deformation model under the condition of general surface profiles or pressure distributions is developed for the contacts of the workpiece with the grinding wheel, regulating wheel, and supporting blade. The new model is validated by comparing the predicted chatter and lobing occurrences with experimental results.