Power oscillations associated with density waves in boiling water reactors (BWRs) have been studied widely. Industrial research in this area is active since the invention of the first BWR. Stability measurements have been performed in various plants already during commissioning phase but especially the magnitude and divergent nature of the oscillations during the LaSalle Unit 2 nuclear power plant event on March 9, 1988, renewed concern about the state of knowledge oN BWR instabilities. The appropriate representation of the physical processes in the non-linear regime requires typically time domain stability analysis. The objective of this paper is to present a physical model, applicable for stability analysis in the non-linear regime, which extends to high amplitude oscillations where inlet reverse flow occurs. The application of this model gives a deeper insight into the physical reasons for the prevention of the uncontrolled divergence of BWR oscillations. The mechanisms that have a stabilizing effect are demonstrated.