In this work, we aim to build the mathematical model for delaminated composite plates resting on elastic foundation by means of improved layerwise theory and finite element implementation for free vibration analysis. The proposed model takes into account the transverse normal and shear deformation of the elastic foundation so as to investigate their effect on the dynamic characteristics of delaminated plates. The four-node plate element is used for the finite element formulations with Langrage interpolation functions for in-plane structural unknowns and Hermite cubic interpolation functions for out-of-plane structural unknowns. The delamination is simulated by means of Heaviside unit step functions allowing for the discontinuity of displacement fields. The effects of both longitudinal locations and interfacial locations of delamination are investigated. The results show that when the delamination located closer to the clamped end and at the middle plane, it has much more severe influence on its natural frequencies. The foundation parameters also have significant effect on the natural frequencies and frequency shift due to delamination. Different layup stacking sequences are also considered in this study.