In a drag-free satellite, the relative position sensor null point and the thrustor lines of action will not be coincident with the vehicle mass center. Thus, attitude motion is sensed by the translation control system. The resulting coupling between the attitude and translational motions can cause attitude instabilities in a gravity stabilized drag-free satellite. In some cases the phase shift which degrades the stability is introduced by the orbital dynamics in a unique interaction of the feedback with the passive attitude control and orbital mechanics. Stability relationships derived from small perturbation linear analysis are discussed and compared with results from a nonlinear analog simulation with derived rate translational control.