Unsteady behaviors of free surface around a rotating vertical shaft in cylindrical stationary casing were investigated. Experiments were carried out with various rotating frequency of the shaft at two initial water levels. An axi-symmetrical free surface oscillation took place when the rotational speed of the shaft became larger than a certain value. The frequency of the free surface oscillation decreased as the rotating frequency increased. A theoretical model was developed, and the mechanisms of the free surface oscillation were clarified. The oscillation was found to be a sloshing mode excited by the change of fluid angular velocity, caused by the change of wetted areas on the inner rotating shaft and outer stationary casing, associated with the change in free surface height.