The material point method (MPM) combines Eulerian method and Lagrangian method and thus both Lagrangian particle position and interaction between neighboring Eulerian grid cells will affect the simulation stability. However, the original critical time step formula in the standard MPM does not reflect the effect of particle position and neighboring cell interaction on stability and overestimates the critical time step so much that the CFL number has to be very small, even smaller than 0.1, to obtain a stable solution at extreme particle positions. Therefore, in many engineering applications, the standard MPM is very expensive due to the small CFL number. In this article, the effect of particle position and neighboring cell interaction on stability of the explicit MPM is studied. An explicit critical time step formula is obtained based on the system eigenvalues in one dimension, and is then extended to two and three dimensions. For extreme deformation problems, the geometric stiffness matrix is taken into consideration which modifies the sound speed of particles in the critical time step formula. Several tests are performed to verify our formula and show a decrease in amount of time steps used for simulation with our formula comparing with the original formula. K E Y W O R D S critical time step, explicit material point method, neighboring cell interaction, particle positions, stability analysis