Coupled lateral vibrations of shafting is analyzed by the Finite Element Method. In the problem formulation axial force, elastic foundation effects and rotary inertia effects are taken into account. A computer program is developed to calculate natural frequencies of the shafting, and used to calculate natural frequencies of the experimental model shafting, which the author used for the paper[11]. The results show good agreement with the measured values. The results are also compared with those of the Transfer Matrix Method. From the comparison it is found that both results agree each other.