In the existing literature, a sensorless AC magnetic suspension system which does not require direct damping of the suspended object for stability has been proposed. This is accomplished by suspending the electromagnet with a spring and damper. First, using a linearized transfer function model for the overall suspension system developed by Jin and Higuchi (1994), a study of the system’s stability is presented in this paper. A root locus is then used in order to see how the damping applied to the electromagnet affects stability. Next, optimization methods and results are proposed to determine values for indirect spring stiffness and damping to most effectively stabilize the system. Lastly, results from linearized analyses are compared to those from numerical integration of the nonlinear system of differential equations.