The axisymmetric dynamic stability of rotating sandwich circular plates with a constrained damping layer subjected to a periodic uniform radial loading along the outer edge of the host plate is studied in the present paper. The viscoelastic material in middle layer is assumed to be frequency dependent and incompressible, and complex representations of moduli are used. Equations of motion of the system are derived by the finite element method where the geometry stiffness matrices induced by rotation and external load are evaluated from solutions of static problems. Bolotin’s method is employed to determine the regions of dynamic instability while the eigenvalue problems with frequency dependent parameters are solved by the modified complex eigensolution method. Numerical results show that the effects of constrained damping layer tend to stabilize the circular plate system and the widths of unstable regions decrease with increasing of rotational speeds.