On the basis of nonlinear features analysis of restoring torque, damping torque and especially hull deformation, a nonlinear roll equation of rotary-molded boats has been established. The equation includes elastic deformation term which makes the equation different from existing ones for steel boats. This paper dissected its dynamic characteristic of rolling motion from different aspects by using time domain diagram, phase graph, Poincare map, as well Lyapunov exponential spectrum. And then, an exact feedback linearization controller was designed using closed-loop gain shaping algorithm to make the boat get rid of chaotic state. Through numerical simulation, it is found that the roll frequency and velocity increase when elastic deformation occurs; i.e., the roll stability margin shrinks, and the chaos phenomenon is much more remarkable. This conclusion laid the foundation for controlling or restraining the boat's rolling and can be used as the basis of how to amend the evaluation criteria on rotarymolded boat stability.