The axisymmetric dynamic instability of polar orthotropic sandwich annular plate combined with electrorheological (ER) fluid core layer and constraining layer are studied in this paper. And, the ER core layer and constraining layer are used to improve the stability of the annular plate system. The boundaries of instability regions for the polar orthotropic sandwich annular plate system are obtained by discrete layer annular finite element and the harmonic balance method. The rheological property of an electrorheological material, such as viscosity, plasticity, and elasticity can be controlled by applying different electric field strength. Thus, the damping characteristics of the sandwich system are more effective when the electric field is applied on the sandwich structure. Additionally, variations of the instability regions for the polar orthotropic sandwich annular plate with different applying electric field strength, thickness of ER layer and some designed parameters are investigated and discussed in this study.