This study focuses on the bifurcation characteristics of the four degree-offreedom gear system with local spalling defect to explore the spalling nonlinear dynamic mechanism. The dynamic model of the gear system with spalling defect, time-variant mesh stiffness, and nonlinear clearance is established to investigate the effect of spalling defect on mesh stiffness and dynamic bifurcation. The primary resonance and internal resonance responses of the spalling model are analyzed by the averaging method, and the bifurcation characteristics with the evolvement of spall and internal excitation are studied by employing the singularity theory for the two-state variable system, which reveal the different bifurcation characteristics caused by the spalling defect. The results obtained herein can provide a theoretical basis to spalling fault diagnosis of gearbox.