Usually all automotives are corresponding to design with rear wheel drive and front engine installation, having transmission shafts. The reduction of weight of the drive shaft can have a certain role in the general weight reduction of the vehicle is an appreciable desired goal. The composite structure as compared to conventional metallic structures has many advantages due to higher specific stiffness and strength of composite materials. The advanced composite materials such as Carbon, Graphite, Kevlar and Glass with suitable resins are widely used because of their high specific strength and high specific modulus. The Composite materials in advanced form seem ideally suited for long power drive shaft applications. The main aim of this project is to conduct FEM analysis and to optimize the design with composite materials. The purpose of analyze is to determine the displacement, stress, strain and forces in structure caused by load which do not promote significant inertia and damping effects. Now-a-day's research on material with vast material combination gives option to replace the conventional material with that of composite which helps in reducing the material cost, high strength.