Dynamic instability of rotating disks is the most significant factor to limit its rotating speed. Application of composite materials to rotating disks may enhance the dynamic stability leading to a possible design of rotating disks with lightweight and high speed. Whereas much work has been done on the effect of transverse shear and rotary inertia, called Timoshenko effect, on the dynamic behavior of plates, there is little work on the correlation between the effect and the rotation of disk, especially nothing in case of composite disks. The dynamic equations of a rotating composite disk are formulated with the Timoshenko effect and the vibrational analysis is performed by using a commercial package MSC/NASTRAN. According to the results, the Timoshenko effect goes seesaw in some modes, unlike the well-known fact that the effect decreases as the rotating speed increases. And it can be concluded, based only on the present results, that decrement of the Timoshenko effect by disk rotation grows larger as the thickness ratio decreases, the diameter ratio increases, the modulus ratio increases, and the mode number increases.