Use of heavy gases in centrifugal compressors for enhanced oil extraction have made the impellers susceptible to failures through acousto-elastic instabilities. This study focusses on understanding the dynamical behavior of such systems by considering the effects of the bounded fluid housed in a casing on a rotating disc. First, a mathematical model is developed that incorporates the interaction between the rotating impeller - modelled as a flexible disc - and the bounded compressible fluid medium in which it is immersed. The nonlinear effects arising due to large deformations of the disc have been included in the formulation so as to capture the post flutter behavior. A bifurcation analysis is carried out with the disc rotational speed as the bifurcation parameter to investigate the dynamical behavior of the coupled system and estimate the stability boundaries. Parametric studies reveal that the relative strengths of the various dissipation mechanisms in the coupled system play a significant role that affect the bifurcation route and the post flutter behavior in the acousto-elastic system. © 2016 Elsevier Ltd