Functionally graded materials (FGMs) are advanced composite materials that are used to solve a number of engineering problems, as well as in the biomedical implant applications for the replacement of human tissues. These materials are used to eliminate the stress singularities that occur, as a result of the property mismatch in the constituent materials in a composite. There are different types of FGMs that are used today, depending on the type of application, for which the material is intended. In this chapter, the different types of FGMs are presented. The areas of application of this novel material are also explained.