In this paper, vibration attenuation characteristic of periodic composite pipeline is studied, focusing on the fluid structure interaction (FSI). Besides fluid velocity and pressure, Poisson coupling and friction coupling are also taken into consideration. A novel modified transfer matrix method (TMM) is proposed to investigate the distribution of band gap structures (BGs), and attenuation intensity within stop band frequency is also accurately predicted. BGs and Frequency response function for axial, transverse, torsional and their coupled modes are calculated and validated with each condition, and display excellent consistency with Shen’s results. In order to explore FSI effect of different models, pipe without fluid loading, with inner fluid taken as additional mass and pipe considering FSI effect are all presented. It is found that BGs with Bragg scattering mechanism are generated in all three models, but the distribution differs greatly, thus the FSI effect could not be ignored in practical engineering applications. The work in this paper provides novel method and useful reference for noise and vibration reduction of pipeline system conveying fluid.