A coupling between TRACE and SIMULATE-3K (TS3K) was developed in collaboration between PSI and Studsvik for analyses involving interactions between system and core, with the goal to enhance the capability to perform best-estimate simulations of Light Water Reactors (LWRs) transients, with strong coupling between core neutronics and plant thermal-hydraulic. In order to verify the coupling scheme and the coupled code capabilities to simulate complex transients, the OECD/NEA Oskarshmn-2 (0-2) Stability benchmark, launched recently, was modeled with the coupled code TS3K. The main goal of this paper is to present TS3K analyses of the Oskarshamn-2 stability event, noting that this constitutes the first reported assessment of this code system for a BWR stability problem. A systematic analysis is carried out using different time-space discretization schemes in order to identify an optimized methodology to simulate correctly the 0-2 stability event. In this context the TS3K results are compared to the available benchmark data both for steady-state and transient conditions. The results show that using a refined model in space and time, the TS3K model can successfully capture the entire behavior of the transient qualitatively, i.e. onset of the instability with growing oscillation amplitudes, as well as quantitatively, i.e. Decay Ratio and resonance frequency. However, it is also shown that the qualitative as well as quantitative trends predicted by TS3K during the transient phase, especially when power oscillations start to take place, is highly sensitive to the pump boundary conditions and that the benchmark specification might in this context need to be further reviewed.