In this paper, the finite element analysis of stability problem of vehicle composite drive shafts subjected to torsional loading is studied. First, using the minimum total potential energy principle, the governing equations are derived and then they are solved by finite element method. The initial geometrical imperfection which is usually in the form of radial displacement, is taken into consideration in the formulation and the displacement field is expressed according to the third order shear deformation theory. Finally, Budyanski’s criterion is employed for determination of the critical buckling load and the effect of different parameters on the buckling behavior is studied. The results show that the stacking sequence, has a significant effect on the buckling torque. Furthermore, the buckling torque increases as the initial imperfection amplitude decreases.