The dynamics of asymmetric rotors has been investigated in the literature. However, considering the importance in the practical fields, the vibration characteristics of slotted shafts are not studied in detail. It needs more attention particularly with the emerging of new materials, such as composites for shafts. The present study aims at the analysis of the slotted shafts including the compensatory inertia slots. Also, the slotted composite shaft has been modelled based on first order shear deformation theory using finite element method with shell elements. Different materials such as, Boron epoxy, Carbon epoxy and Graphite epoxy have been tried for various stacking sequences. The slot parameters, stacking sequences and material properties have found to influence to great extent on the vibrational characteristics of rotors. The results are compared with those of isotropic slotted shaft.