Sloshing response of liquid in a rigid cylindrical tank with a rigid annual baffle under horizontal sinusoidal loads was studied. The effect of the damping was considered in the analysis. Natural frequencies and modes of the system have been calculated by using the Sub-domain method. The total potential function under horizontal loads is assumed to be the sum of the tank potential function and the liquid perturbed function. The expression of the liquid perturbed function is obtained by introducing the generalized coordinates. Substituting potential functions into the free surface wave conditions, the dynamic response equations including the damping effect are established. The damping ratio is calculated by Maleki method. The liquid potential are obtained by solving the dynamic response equations of the system.