Effect of nonlocality on the dynamic behavior of laminated composites is investigated by means of dispersion of vertically polarized harmonic shear waves propagating in the direction parallel to layering. Nonlocal elasticity is briefly summarized and the dispersion relation for symmetric and anti-symmetric waves are obtained within the framework of both classical and elasticity. The numerical structure of the problem is investigated as to reduce some possible incorrect results which may take place in the solution. Results are displayed in a serious of figures. Advantages of nonlocal elasticity in representing the mechanical behavior of composite materials is discussed. (C) 2002 Published by Elsevier Science Ltd.