The parametric instability behaviour of a plate subjected to localized in-plane compressive or tensile periodic edge loading is studied, considering the effects of damping into the system. Different edge loading cases have been considered. Damping has been introduced in the form of proportional damping. Dynamic instability behaviour under compressive or tensile periodic edge loading shows that the instability regions are influenced by the load band width and its location on the edge. The effects of damping on the instability regions show that there is a critical value of dynamic load factor beyond which the plate becomes dynamically unstable. The critical dynamic load factor increases as damping increases. Damping generally reduces the widths of the instability regions.