The elastic buckling of square and skew thin functionally graded material (FGM) plates with cutout resting on an elastic foundation is investigated using the isoparametric spline finite strip method. It is assumed that the material properties of FGM plates vary smoothly through the thickness according to the power law model. The elastic foundation is simulated by the Winkler and two-parameter Pasternak models. The isoparametric spline finite strip method is also applied to investigate initial inelastic local buckling loads of skew homogenous plates with cutout based on the Ramberg–Osgood representation of the stress–strain curve using the deformation theory of plasticity. The critical buckling load of the plate is achieved by minimizing its total potential energy and solving the corresponding eigenvalue problem. In addition, the effects of elastic foundation coefficients and hole size on the local buckling of plates with different boundary conditions are determined and discussed.