Free vibration of orthotropic functionally graded beams, whose material properties can vary arbitrarily along the thickness direction, is investigated based on the two-dimensional theory of elasticity. A hybrid state-space/differential quadrature method is employed along with an approximate laminate model, which allows us to obtain the semi-analytical solution easily. With the introduction of continuity conditions at each fictitious interface and boundary conditions at the top and bottom surfaces, the frequency equation for an inhomogeneous beam is derived. A completely exact solution of an FGM beam with material constants varying in exponential way through the thickness is also presented, which serves a benchmark to verify the present method. Numerical results are performed and discussed.