Dynamic stability and design optimization of laminated simply supported plates under planar conservative boundary loads are investigated in current study. Examples can be found in internal connecting elements of spacecraft and aerospace structures subjected to edge axial and shear loads. Designation of such elements is function of layup configuration, plate aspect ratio, loading combinations, and layup thickness. An optimum design aims maximum stability load satisfying a predefined stable vibration frequency. The interaction between compound loading and layup angle parameter affects the order of merging vibration modes and may stabilize the dynamic response. Laminated plates are assumed to be angle-plies symmetric to mid-plane surface. Dynamic equilibrium PDE has been solved using kernel integral transformation for modal frequency values and eigenvalue-based orthogonal functions for critical stability loads. The dictating dynamic stability mode is shown to be controlled by geometric stiffness distributions of composite plates. Solution of presented design optimization problem has been done using analytical approach combined with interior penalty multiplier algorithm. The results are verified by FEA approach and stability zones of original and optimized plates are stated as final data. Presented method can help designers to stabilize the dynamic response of composite plates by selecting an optimized layup orientation and thickness for prescribed design circumstances.