Functionally graded materials (FGMs) are novel engineering composite materials with the properties varying across the volume of a composite material. There are different kinds of manufacturing methods for producing functionally graded material (FGM)—depending on whether it is functionally graded material thin coating or bulk functionally graded material. The various processing techniques of the functionally graded materials, such as the physical vapour deposition process, or the chemical vapour deposition process that are used for the production of thin-film functionally graded material coatings and the processes, such as the powder metallurgy technique and the centrifugal casting method for the production of bulk functionally graded materials. These are discussed in this chapter. The thin functionally graded material coatings are used to improve the surface properties of the coated part or the substrate. The bulk functionally graded materials, on the other hand, are produced when a variation in properties is desired across the whole bulk of the material.