The influence of structural nonlinearities on the transonic aeroelastic behavior of a two-degree-of-freedom system consisting of an airfoil which is plunging and pitching is considered. The preload and freeplay nonlinearity in the spring model are treated using the asymptotic expansion method which takes into account the influence of the higher harmonics. The aerodynamic load vector is obtained by solving the unsteady transonic small-disturbance (TSD) equation using an alternating-direction implicit (ADI) finite-difference algorithm. The frequency domain solution of the aeroelastic equation is obtained using the U-g method, and the aeroelastic response is carried out by applying Newmark-β and Wilson-ϑ methods. A comparison is made between the results obtained from these two solutions. The effects of preload and freeplay magnitudes on the stability of the system and the corresponding reduced frequency and mass density ratio at neutrally stable response are studied.