This paper reports the results of sensitivity analysis of the multidimension, multigroup neutron diffusion NODAL3 code for the NEACRP 3D LWR core transient benchmarks (PWR). The code input parameters covered in the sensitivity analysis are the radial and axial node sizes (the number of radial node per fuel assembly and the number of axial layers), heat conduction node size in the fuel pellet and cladding, and the maximum time step. The output parameters considered in this analysis followed the above-mentioned core transient benchmarks, that is, power peak, time of power peak, power, averaged Doppler temperature, maximum fuel centerline temperature, and coolant outlet temperature at the end of simulation (5 s). The sensitivity analysis results showed that the radial node size and maximum time step give a significant effect on the transient parameters, especially the time of power peak, for the HZP and HFP conditions. The number of ring divisions for fuel pellet and cladding gives negligible effect on the transient solutions. For productive work of the PWR transient analysis, based on the present sensitivity analysis results, we recommend NODAL3 users to use2×2radial nodes per assembly,1×18axial layers per assembly, the maximum time step of 10 ms, and 9 and 1 ring divisions for fuel pellet and cladding, respectively.