Parallel piezo-flexural nanopositioning stages are extensively used in advanced nano-scale imaging and manipulation applications such as scanning probe microscopy systems. One of the major deficiencies of these devices is the coupled motion between their different axes. That is, the motion of stage in one direction interferes with motions in the other directions, leading to undesirable disturbances. In this paper, analytical, dynamic, experimental, and finite element analyses are carried out to investigate the major root cause of the cross-coupling effect. Using ABAQUS FEA software, a 3D model of the stage has been developed. Model consists of a central elastic body connected to the fixed frame through four flexural hinges. A cylindrical stack of multiple piezoelectric layers is placed between the moving central body and the fixed frame. Simulations are carried out for two different friction coefficients in the contact surfaces of the piezoelectric layers, and for different frame materials. It is observed that the main cause of the cross-coupling effect is the rotation of piezoelectric stack due to its friction with the stage moving in the tangential direction, concurrent with a change in the geometry of the stage.