Starting with the geometrically non-linear formulation and the subsequent linearization, this paper presents a consistent formulation of the exact mechanical analysis of geometrically and materially linear three-layer continuous planar beams. Each layer of the beam is described by the geometrically linear beam theory. Constitutive laws of layer materials and relationships between interlayer slips and shear stresses at the interface are assumed to be linear elastic. The formulation is first applied in the analysis of a three-layer simply supported beam. The results are compared to those of Goodman and Popov (1968) and to those obtained from the formulation of the European code for timber structures, Eurocode 5 (1993). Comparisons show that the present and the Goodman and Popov (1968) results agree completely, while the Eurocode 5 (1993) results differ to a certain degree. Next, the analytical solution is used in formulating a general procedure for the analysis of layered continuous beams. The applications show the qualitative and quantitative effects of the layer and the interlayer slip stiffnesses on internal forces, stresses and deflections of composite continuous beams.