In this study, a new smart beam finite element is proposed for the finite element modeling of beam-type smart structures that are equipped with bonded plate-type piezoelectric sensors and actuators. Constitutive equations for the direct piezoelectric effect and converse piezoelectric effect of piezoelectric materials are considered in the formulation. By using a variational principle, the equations of motion for the smart beam finite element are derived. The proposed 2-node beam finite element is an isoparametric element based on Timoshenko beam theory. The proposed smart beam finite element is applied to the free vibration control adopting a constant gain feedback scheme. The electrical force vector, which is obtained in deriving an equation of motion, is the control force equivalent to that in existing literature. Validity of the proposed element is shown through comparing the analytical results of the verification examples with those of other previous researchers. With the use of smart beam finite elements, simulation of free vibration control is demonstrated by sensing the voltage of the piezoelectric sensors and by applying the voltages to the piezoelectric actuators.