The effect of shear deformation and rotary inertia terms on the free vibration of a beam with overhang was investigated. A recently proposed modified Timoshenko-type equations of motion were used to analyze the vibration of the structure. Two different sets of boundary conditions, with either a fixed or hinged end support, were studied. The results were compared with those obtained for the classical Bernoulli–Euler beam theory. The comparison shows that for a hinged end beam with very long overhang, where the span between the supports is less than one tenth of the overall beam length, the classical theory significantly overestimates the values of the fundamental natural frequencies, even for isotropic shear rigidity. On the other hand, the span effect is reversed for the clamped end beam, for which a relatively significant difference between the classical theory and shear theory results may occur only for a long span. For transversely isotropic beams, the refined theory predictions of the fundamental natural frequencies may be much smaller than those obtained through the rigid shear theory, especially for short span hinged end beams and long span clamped end beams.