In this work, a nonlinear dynamic model of an FZG-A10 spur gear was investigated by taking into account for the actual time-varying gear mesh stiffness and the frictional effects between meshing gear teeth to evaluate the influence of the dynamic effects on frictional gear power loss predictions. The equations of motion of the generalized translational-torsional coupled dynamic system derived from Lagrange principle was extended compared to authors’ previous work in order to account for time dependent coefficient of friction and profile errors. The dynamic response of spur gears, computed by an iterative implicit scheme of Newmark, is changed due to the presence of coefficient of friction and profile errors. A dynamic analysis was performed and the influence of frictional effect including tooth shape deviations, in particular, was scrutinized since a time-dependent coefficient of friction is deeply related to the gear surface roughness and all parameters dependent on gears error profiles are introduced in the proposed model. The predicted meshing gear power losses with constant and local friction coefficient were compared. The influence of constant and variable profile errors considered in the local coefficient of friction formulation was also studied and their corresponding root mean square (RMS) power loss was compared to the experimental results. The results using FZG A10 spur gear pairs running under several operating conditions (different loads and speeds) validate the superiority of the proposed model against previous similar models.