A finite element method is investigated for studying the free vibration and supersonic flutter analysis of arbitrary damaged composite panels. The finite element method employs a 48 degrees of freedom (DOF) general plate element and uses the classical lamination theory, microstructural continuum damage theory and linearized piston theory. Two different damage models were investigated. Finite element results are obtained to illustrate the effect of damage on the eigenvalues and flutter boundaries. The results obtained indicate that between the two models considered, damage model 1 has a strong influence on both free vibration and flutter boundaries. (C) 1997 Elsevier Science Ltd.