This paper deals with the FE analysis for the free vibration of sloshing in horizontal cylindrical tank with baffles. We use Laplace equation based on potential theory as governing equation. This problem is solved by FEM using lineal isoparametric elements. We assume that the tank as well as baffles is rigid body and by separating nodes into two at the baffle location, baffle effect is obtained by separating nodes into two at the baffle location. For the calculation of natural frequencies and mode shapes, we introduce Lanczos transformation and Jacobi iteration methods. Numerical results of the first longitudinal and transverse modes, while comparing with literature cited, are very good. In order for the baffle effects on the free vibration of sloshing, various combinations of baffle parameters, which are location, inner diameter and number, are examined.