In this article the effect of a rectangular cutout on the buckling behavior of a thin composite cylinder was investigated using numerical and experimental methods. To verify the finite element results, a limited number of tests was carried out on perforated and non-perforated glass/epoxy cylinders with [90/−23/23/90] layups. In the numerical analysis, linear and nonlinear approaches were employed to study the effect of initial imperfections on the buckling of the cylinders. Several key findings including the effects of cutout size and orientation, and the mutual effects of the cutout and initial imperfections on the buckling behavior were investigated in detail.In the presence of cutouts, the effect of initial imperfections on the buckling load is a function of the cutout size. In cylinders with rectangular cutouts, buckling analysis revealed that a rectangular cutout in the circumferential direction causes around 8% more reduction in the buckling load than the same cutout in the axial direction. Also, numerical findings illustrated that elastic stress concentration factors for the circumferential cutouts are much greater than those for the axial cutouts; thus premature failure around the cutout will trigger earlier buckling in the cylinder with circumferential cutouts.