Dynamic analysis of laminated beams with a embedded damping layer under tension or compression axial load is investigated. Improved Layer-Wise Zig-Zag Beam Theory and Interdependent Kinematic Relation using the governing equations of motion are incorporated to model the laminated beams with a damping layer and a corresponding beam zig-zag finite element is developed. Flexural frequencies and modal loss factors under tension or compression axial load are calculated based on Complex Eigenvalue Method. The effects of the axial tension and compression load on the frequencies and loss factors are discussed.