Based on the Sanders thin shell theory, this paper presents an exact solution for the vibration of circular cylindrical shell made of two different materials. The shell is sub-divided into two segments and the state-space technique is employed to derive the homogenous differential equations. Then continuity conditions are applied where the material of the cylindrical shell changes. Shells with various combinations of end boundary conditions are analyzed by the proposed method. Finally, solving different examples, the effect of geometric parameters as well as BCs on the vibration of the bi-material shell is studied.