I have successfully installed multisite on my bluehost primary domain. When i tried to follow the same steps to set up multisite on another bluehost add-on domain it didn't work. Is it possible to set up multisite on bluehost add-on domains, and if so how?
Yes; I have done this without issues. I just installed a basic WP on the add-on domain, then converted it to multisite using the usual instructions.
If already installed, check the two site URL entries in the wp-options table; they should match the root of your site.