In this paper, lateral vibration of a rotating system with rotor–stator rubbing is investigated experimentally and numerically. An experimental study is conducted using a simple test rig to model a horizontal rotating system with a fixed stator device to simulate rubbing. Furthermore, a lumped parameter model with two degrees of freedom is established with a viscoelastic contact model that considers the stiffness and damping properties of the stator. The fourth/fifth order Runge–Kutta technique is used to solve the nonlinear equations of motion of the rotor system. The effect of changing mass unbalance and radial clearance on the dynamic response is investigated experimentally and numerically. The observed results are presented in detail through bifurcation diagrams, frequency spectra, Poincaré’s points, orbit plots, and time waveforms. The experimental results show that changing the mass unbalance and radial clearance yield significant effects on the system response. The 2 × and 3 × harmonic components are found to serve as good indicators of increasing rub severity. The numerical results show the dynamic characteristics of rub responses such as periodic no-contact, periodic with contact, quasi-periodic, and chaotic responses. The response characteristics are very sensitive to the changes in system parameters and initial conditions. Both the experimental and numerical results show qualitatively that the lateral vibration response exhibits coexistence and alternation of periodic and chaotic responses. Also, quasiperiodic response shows up in some numerical case studies. The obtained results contribute toward a better diagnosis of rotor–stator rub fault in rotating machines.