Considering the shear capacity of elastic foundation and the shear deformation effect of beam, the equilibrium equation for Timoshenko beam resting on two-parameter foundation was derived. The initial parameter solution and transfer matrix method were presented. Using the initial parameter solutions, the finite element formulation and equivalent nodal forces of distributing load were deduced. When the shear rigidity of foundation was zero, the two-parameter foundation could be degenerated into Winkler foundation. When the shear rigidity was infinite, Timoshenko beam could be degenerated into Euler beam. Using the present finite element method, we analyzed inverse T type Timoshenko beam on two-parameter foundation under the concentrated loads on ends and stepped Timoshenko beam on two-parameter foundation under concentrated load, concentrated moment and distributing load. Results have shown that the present results are identical with others, which validate initia l parameter solutions, transfer matrix and finite element method.