Statistical orbit determination is an important part of tracking satel
lites and predicting their future location. This is accomplished by pr
ocessing the raw observation data from ground stations tracking satell
ites in orbit and estimating the location of these satellites. Kalman
filter theory is a popular statistical process but it is not commonly
used for satellite orbit determination because it exhibits poor stabil
ity characteristics in this application. In particular, an Extended Ka
lman Filter (EKF) is needed for this application because the orbit det
ermination problem is a nonlinear one. The EKF does not lend itself we
ll to the traditional eigenvalue stability analysis, which is applicab
le for linear, time-invariant systems. If the stability characteristic
s of the EKF used for the orbit determination problem were better unde
rstood, it could become useful for these applications. A stability ana
lysis concept which has received much attention is Lyapunov's stabilit
y theory. The focus of this paper is to apply the second method of Lya
punov (or the direct method) to evaluate the stability characteristics
of an EKF estimating a satellite's orbit using simulated radar data f
rom ground tracking stations at Mahe Island and Thule. Specifically, a
Lyapunov function is used to analyze the stability characteristics of
that EKF while selecting the weighting matrices of the filter for the
satellite orbit determination problem.