The application of a Dynamic Finite Element (DFE) technique to the extensional-torsional free vibration analysis of nonuniform composite beams, in the absence of flexural coupling, is presented. The proposed method is a fusion of the Galerkin weighted residual formulation and the Dynamic Stiffness Matrix (DSM) method, where the basis functions of approximation space are assumed to be the closed form solutions of the differential equations governing uncoupled extensional and torsional vibrations of the beam. The use of resulting dynamic trigonometric interpolation (shape) functions leads to a frequency dependent stiffness matrix, representing both mass and stiffness properties of the beam element. Assembly of the element matrices and the application of the boundary conditions then leads to a frequency dependent nonlinear eigenproblem, which is solved to evaluate the system natural frequencies and modes. Two illustrative examples of uniform and tapered cantilevered, Circumferentially Uniform Stiffness (CUS), hollow, composite beams are presented. The influence of ply fibre-angle on the natural frequencies is also studied. The correctness of the theory and the superiority of the proposed DFE over the contrasting DSM and conventional FEM methods are confirmed by the published results and numerical checks. The discussion of results is followed by some concluding remarks.