In this study, a new sub-parametric strip element is developed to simulate the axially loaded composite cylindrical panel with arbitrary cutout. For this purpose, a code called SSFSM is developed in FORTRAN to analyze the buckling of panels. The first order shear deformation theory is used to form the straindisplacement relations. Spline and Lagrangian functions are used to derive element shape functions in the longitudinal and transverse directions, respectively. The computational cost of the SSFSM is decreased dramatically, as mapping functions of the strip element are very simple. The results obtained from the SSFSM are compared with those of the literature and the results obtained by ABAQUS to show the validity of the proposed approach. A parametric study is performed to show the capability of the SSFSM in calculating the panel buckling load. Results indicate that increasing the panel thickness and panel central angles cause an increase in panel buckling load. The cutout shape is an important factor influencing the panel buckling load. For instance, when the angle between the direction of big chord of the elliptical cutout and compressive load direction are 0 and 90 degrees, the panel buckling load reaches its minimum and maximum magnitude, respectively.