Dispersion of horizontally polarized shear waves propagating in a laminated composite is studied within the framework of nonlocal elasticity. A brief summary of nonlocal elasticity is given with an emphasis on its potential for a better modelling the mechanical behaviour of composite materials. Possible deficiency which may exist in the literature on the dispersion relations obtained within the framework of classical elasticity is indicated. Dispersion relation for an SH wave propagation in an infinite medium of alternating layers of two elastic materials is obtained in classical elasticity as well as in nonlocal elasticity. Results are displayed in a series of figure for some values of parameters of the problem. Advantages of nonlocal elasticity over classical one in predicting dispersion in wave propagation is discussed.