The dynamic aeroelastic response and its active control of aircraft wings modeled as anisotropic composite thin-walled beams in an incompressible flow and exposed to gust and explosive type loads are examined. The structural model incorporates a number of non-classical effects, such as transverse shear, material anisotropy, warping inhibition, and rotatory inertia. The circumferentially asymmetric stiffness lay-up is used to generate preferred elastic couplings, and in this context the implication of elastic coupling, warping inhibition on the aeroelastic response is investigated. The unsteady incompressible aerodynamics for arbitrary small motion in the time domain is based on the concept of indicial functions. Dynamic aeroelastic responses due to gust and blast loads are specifically investigated. Active suppression of aeroelastic instability via novel control approach based on design of LQG controller and sliding mode observer are successfully demonstrated.