This study has investigated the influence of journal bearing wear on the dynamic behaviour of a flexible rotor with a central disc. Rotors supported on journal bearings are susceptible to self-excited whirling, leading to unstable conditions. Prior knowledge of the stability limit speed is important to avoid the excessive vibration of rotating machines. For the study in this paper, journal bearings were lubricated with powder owing to high-temperature applications where conventional oil lubricants would fail to perform. The governing equations for lubrication were derived using a simplified grain theory based on the theory of dense gases. The rotor shaft was discretized considering Timoshenko beam elements. Modal analysis was conducted to obtain the system’s natural frequencies, mode shapes, damping factors, stability limit speed, and unbalance response. This study has also evaluated the influence of wear depth on the dynamic behaviour of the rotor shaft system and found that bearing wear significantly affects the stiffness and damping characteristics of lubricating film. Consequently, free and forced vibration behaviour is also affected. It has been found that increased wear depth improves stability limit speed but has little influence on the unbalance response.