In the present article, an exact solution has been given to investigate the influence of porosity inclusion, boundary conditions, and volume fraction index on the vibration response of functionally graded material (FGM) plates using the dynamic stiffness method (DSM). The material properties of FGM are continuously changing along the thickness direction of plates according to the power law with even porosity inclusion. Classical plate theory (CPT) along with the concept of a physical neutral surface is employed to develop the governing differential equation of motion by using Hamilton's principle. The levy type (closed form) solution is used to develop the dynamic stiffness matrix. The Wittrick-Williams algorithm has been employed to compute the exact natural frequency of the FGM plates with porosity inclusion. The efficacy and authenticity of the present formulation have been ascertained by comparing the present results with those of the literature. A comprehensive parametric study has been performed to compute the influence of various geometric and boundary configurations on the vibration response of the FGM plates. © 2022, The Author(s), under exclusive licence to Springer-Verlag France SAS, part of Springer Nature.