A new sinusoidal shear deformation theory is developed for bending, buckling, and vibration of functionally graded plates. The theory accounts for sinusoidal distribution of transverse shear stress, and satisfies the free transverse shear stress conditions on the top and bottom surfaces of the plate without using shear correction factor. Unlike the conventional sinusoidal shear deformation theory, the proposed sinusoidal shear deformation theory contains only four unknowns and has strong similarities with classical plate theory in many aspects such as equations of motion, boundary conditions, and stress resultant expressions. The material properties of plate are assumed to vary according to power law distribution of the volume fraction of the constituents. Equations of motion are derived from the Hamilton’s principle. The closed-form solutions of simply supported plates are obtained and the results are compared with those of first-order shear deformation theory and higher-order shear deformation theory. It can be concluded that the proposed theory is accurate and efficient in predicting the bending, buckling, and vibration responses of functionally graded plates.