Analysis of arbitrarily laminated composite beams is presented based on a higher-order shear deformation theory. The governing equations are derived by minimizing the total potential energy of arbitrarily laminated beams undergoing axial and transverse shear strains under laterally distributed load. The exact solution of the governing equations is presented for hinged-hinged beam. The displacement and stresses of several laminated beams are calculated and compared with published results. The results of a parametric study showing the nature of axial and interlaminar shear for various ply-stacking patterns, beam aspect ratios and transverse shear are demonstrated.