This paper describes a new dynamic model for a waterjet cutting system that includes a double-acting reciprocating intensifier pump. Since the system operates at high pressures the fluid flow is assumed to be compressible. The dynamic model includes the characteristics of the intensifier pump, the check valves, the accumulator, the system piping and compressible jet flow through the nozzle. The system model is presented as a set of differential-algebraic equations. Experimental results for an actual system are used to identify the discharge coefficient of the nozzle, certain unknown parameters associated with the check valve, and to determine the velocity profile of the piston in the intensifier pump. This is accomplished by formulating and solving a parameter optimization problem. The paper also includes numerical simulation results that validate the dynamic model.