In the present study free vibration of non-homogenous beam subjected to the axial force resting on elastic foundation has been examined. Non-homogeneity of the material is characterized considering the exponential variation of the Young's modulus along the thickness direction of the beam while the value of density is assumed to remain constant. The foundation medium is assumed to be linear, homogenous and isotropic, and it is modeled by the Pasternak model with two parameters for describing the reaction of the elastic foundation on the beam. Firstly, the equation of motion of non-homogeneous beam subjected to axial force resting on Pasternak foundation is provided within the frame work of Bernoulli-Euler beam theory. The resulting equation is solved according to the simply supported boundary conditions. To show the accuracy of the present results, a comparison is performed and a good agreement is achieved. The effects of non-homogeneous material properties, elastic foundation parameters and axial load on the values of frequency parameters of the first three modes are examined.