As a key component of the machine tool spindle, bearing has critical influences on the spindle thermal error. In particular, the installation errors of bearing have considerable effects upon the spindle thermal error by altering the bearings' internal contact angles, contact loads, and friction torques for different ball positions, but have yet to be fully elucidated. In this article, the influence of installation errors on the resulting spindle thermal error was evaluated using both empirical methods and simulation method, with the ultimate aim of reducing installation error. Deviations within the bearing support were used to simulate bearing parallel misalignment; bearing parallel misalignment running model was built, and an analysis and comparison of various conditions were used to determine the influence, showing that the parallel misalignment has significant influence on the spindle Z direction thermal error.